By Srinivas Chowdary Sunkara // petrobazaar // 29th Nov, 2018.
Brent front month futures dropped by $1.45 to $58.76, lost 2.41 pct and WTI closed down at $50.29 after losing $1.27 or 2.46 percentage last night. Yesterday, Oil tried to latch on stock market excitement, but at the end of the day, Selling pressure came in since many traders were still bearish on oil after U.S government agency confirmed the piling up of crude stocks for the straight 10th week.
EIA reported that U.S commercial crude oil and distillates inventories are built up by 3.6Mb and 2.6Mb respectively while gasoline stocks were drawn by 0.8Mb during the last week. U.S crude production is still hovering at high to 11.7Mbpd. Inventories at Cushing hub are also increased relatively by 1.2Mb. Looming escalation over economic worries, supply glut, strong dollar and dampening petroleum demand across the market wiped out 30 pct of the value since the beginning of the October.
Now all eyes are on the G20 summit and OPEC/non-OPEC talks. The first meeting would affect the economic environment which would spur the oil demand and the second meeting would discuss on some form cuts to counter ongoing supply glut. Asian markets are opened green today. Good day.
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