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.
Disclaimer: Views and opinions expressed here are for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com
