By Srinivas Chowdary Sunkara // petrobazaar // 14th August, 2018.
Brent for October delivery lost $0.18 to $72.61 and Sep WTI slipped by $0.43 to $67.2 last night. The economic turbulence in Turkey and strengthening of greenback along with the concerns on global oil demand were the reasons cited for yesterday's price drop. OPEC monthly oil report indicated lowering of global GDP growth and weaker than expected oil demand compared to last month report. OPEC confirmed the increase in cartel's July production.
It is evident that sanctions in Iran will remove remarkable quantity of oil from market however it does not look scary as the Russia and Saudi are proved to be capable of compensate the loss. However Saudi preferred to cap the production as it found that its crude demand is lower than estimated. Trade tariff tensions are hovering around the market. U.S crude prices are fell by 2% since the start of the month. Low inventories in Cushing is the only factor supporting U.S oil price.
The above all are the factors identified to attribute. To me, I do not have any clue where markets move. I know that technicals are ruling the markets. The point to be noted is that next few weeks are going to be key. Asian markets are opened in green today. Good day.
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