By Srinivas Chowdary Sunkara // petrobazaar // 4th Oct, 2018.
Brent advanced $1.63 to $86.29 with 1.93 pct up and U.S crude settled up by $1.18 or 1.57 % to $76.41 last night. The spread is widened to $10 which is a premium to Brent on supply side risk. Yesterday, Markets slipped in the early trading on Saudi's comments on increasing supply, later on bullish EIA stats also pressed oil prices for some time. Speculators community took the buying opportunity on dip by undermining the report of piling up of U.S crude stocks during the week end, Signalling that nothing matters between today and Nov.4.
Oil markets are still drawing support from Iran sanctions loom. Surprisingly China indicated to limit the Iran crude imports. To me, China is targeting U.S on high oil prices. On the other hand, Putting pressure on Iran for further discounts. As per the analysts, U.S crude may reach $85 in 2018 and market will take turn around in 2019. Today Asian markets are opened down at the time of reporting. Have a good day.
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