By Srinivas Chowdary Sunkara // petrobazaar // 9th August, 2018.
Brent prices dived by $2.37 to $72.28 and WTI dropped sharply by $2.23 to $66.94 last night. Both the futures lost around 3.2 pct from its previous closing. U.S crude missed to break through $70 again in this week. China's tariffs on U.S products in retaliation and EIA report of crude drawings below the estimated numbers, pushed down oil prices yesterday.
I still do not understand why markets are responding to trade tariff tensions and Iran sanctions as the oil is already priced in earlier. Markets neglected the China's trade numbers. Of late there has been a talk of slow down in second largest energy consumer's economy. Despite of trade tensions, China maintained upward momentum in exports and imports.
Coming to weekly stats, EIA reported 1.4Mb drawings in crude supplies while gasoline and distillates stocks were built up for the week ending 3rd Aug. U.S crude production dipped at 10.8 Mb. The refinery percentage utilisation is at record high which would have drawn crude stocks amid slowing down in U.S crude production. The stocks at Cushing, a key U.S storage hub are still on downside. Asian markets are opened in positive territory today. Good day.
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