By Srinivas Chowdary Sunkara // petrobazaar // 31st July, 2018.
Brent rose $0.68 at $74.97 and WTI price surged to $70.13 with $1.44 or 2.1 pct last night. Brent Sep contract expires today. Weak dollar and demand growth prospectus helped the oil prices yesterday.
Rebounding of oil prices from last week lows was attributed to looming sanction on Iran started curtailing the imports from Iran. When 60% of Iran production is being imported by Asian giants and they are trying to push back U.S threat, where is the question of denting? and let us not forget that China, a largest Asian importer has a trade war with U.S.
Another factor to keep in mind is that the Saudi's export numbers were not down. It is only a short term disruption due to lack of insurance coverage on the shipments moving through 'Bab el Mandeb strait'. They can export through 'Horn of Africa', which is costly comparatively. No worries on supplies.
Today oil prices were opened down after a report showed an increase in OPEC supplies during July. Market will digest quickly as it was expected. Good day.
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