By Srinivas Chowdary Sunkara // petrobazaar // 25th May, 2018.
Oil prices are dwindling
Oil prices are carrying lot of bearish news. U.S crude futures lost 1.57Pc where as Brent dropped by 1.27Pc. Significant build in U.S crude stocks and strong dollar continued weigh on WTI. Before start of U.S driving season at the week end, WTI prices are expected to go down further.
Brent is in focus before scheduled OPEC meeting in the coming month. Russians hinted for potential end to cuts and some of other members are ready to open the gates for gradual increase of production, pulling back Brent prices. On the other hand, Brent is expected to near $100, provided further escalation of tensions in middle east. U.S Rig numbers are expected today.
Crude price update
Yesterday, U.S crude futures 'WTI' prices for July delivery slipped by $1.13 to settle at $70.71 while Brent futures to be delivered in July lost $1.01 to close at $78.79 a barrel on London based ICE futures Europe exchange. Shanghai futures dropped heavily. Today Asian markets are opened in red zone and trading with a loss of around .17% at the time of reporting.
I agree with the fact mentioned in FIS that 'those non-traditional members of the futures market are intent, for the time being, to keep prices up just below the $80 level'. U.S crude may see $68 levels due to bearish pressure before entering into driving season.
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