By Srinivas Chowdary Sunkara // petrobazaar // 30th July, 2018.
Brent dropped $0.25 to $74.29 and WTI lost $0.92 at $68.69 on Friday. Brent broke the straight three week's loss and posted a weekly gain of 1.7 pct. U.S crude lost 2.5% for the straight fourth week. Oil is losing streak with a monthly loss of 7pct to close today. It was analysed that a dropping U.S equity markets weighed on oil prices and supply disruptions in gulf region supported Brent on previous closing day. To my surprise, How could oil markets ignored the signs of economic growth led to demand growth indicated by increased rig numbers and weekly production numbers. Yes, sometimes oil follows equity markets abruptly.
Russia is in hurry to pump beyond 1Mbpd by scrapping the production cut deal while Saudi is on IPO job. Many questions on Citibank's 'Oil at $45' story. Is Market is really happy with $75? I don't know. But I doubt whether the 'prediction of $45' priced in the consequences of sanctions on Iran, Issues at choke points in the middle east, Tensions in red sea and finally what will happen, If Iran's barrels takes off when demand growth is in place. Today Asian markets are opened with gap down and oil prices are expected to be mixed today. Good day.
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