By Srinivas Chowdary Sunkara // petrobazaar // 15th May, 2018
Oil prices are firm
Brent gained 1.44% while WTI increased by 0.37% after a fall in the early trade, yesterday. Oil prices were pulled back after reaching three and half year's high levels over the uncertainty on Iran's deal as Europe and Asian countries backed Iran and OPEC and allies are confident of supplementing the possible shortage of 1Mbpd from Iran.
Increase in Rig count and U.S oil production weighed on the oil prices yesterday. OPEC monthly report maintained growth in oil demand and strong compliance rate by OPEC countries which supported the oil prices. Today Asian markets are opened up and trading with below 0.5% gains at the time of reporting.
Crude oil prices update
U.S crude futures to be delivered in June gained 26 cents to close at $70.96 on Nymex while Brent futures for July delivery advanced $1.11 per barrel on London based ICE futures Europe exchange. Shanghai futures recovered earlier losses while MCX closed with negligible gains.
Comment
Markets are moving cautiously as bulls are leaving the market with long positions. API report is due today which may cause some volatility. Strong demand, OPEC commitment on tightening the market are the supporting arms while uncertainty on the outcome of U.S reimposing the sanctions on Iran and stronger dollar are the bearish factors for today.
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