By Srinivas Chowdary Sunkara // petrobazaar // 3rd Oct, 2018.
On Tuesday, Brent lost 32 cents to $84.66, not far off from recent four year's high and WTI slipped 7 cents to $75.23, still at high after Nov, 14th of 2014. Both the crude futures steadied after a continuous rally for three sessions. Most of the Asian markets are closed yesterday. Crude markets are still drawing support from supply fears when U.S sanctions against Iran start in a month. According to sources, API reported a build of 907Kb in U.S crude stocks and decline in gasoline and distillates for the week ended Sep, 28th. EIA needs to confirm the numbers today. Consensus is on 2.76Mb in crude supplies.
Turning to other side, I surprised why markets are not responding to the Saudi's offer of additional 550Kb, Does market not believe them?. I know that you know, you know that i know and i know that i know the typical dual game, producers are playing.They don't want to see sell off while trying to honor Donald's tweets. Saudi has a production capacity of 12Mbpd, Never produced above 10.7Mbpd and this will be a new territory for them.
Producers should mind that if end user gets hurt with additional fuel burden, He will start affecting the demand. Asian markets already started reacting. Today Asian markets are opened in green zone. Good day.
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