By Srinivas Chowdary Sunkara // petrobazaar // 4th July, 2018
WTI August futures closed last night higher at $74.14 a barrel with 0.27 pct increase from its earlier close while Brent Sep futures settled higher at $77.76 with $0.46 up. Traders weighed the prospectus of global crude supplies against the supply disruptions from Canada and Libya. WTI saw a steep intraday fall from above $75 levels on higher output talk. API reported a decline in U.S crude stocks to the tune of 4.5Mb and gasoline, distillates stocks of roughly 3.1Mb and 438K barrels respectively. Today, Asian Markets are opened with bullish mood on API stats along with market tightening talk.
Outside the North America, A series of developments caused a bearish mood in the oil market for last couple of days starting from OPEC + meeting followed by Trump tweet pressing Saudi to increase the production. Saudi and Russia together agreed to increase the output by 1Mb where as Trump is asking Saudi to ramp up 2 Mb to pull down oil prices through compensating supply disruptions from Canada outage of 360K and Libya force majeure of 850K. In Nov, Sanctions on Iran will take out around 1.7Mb from the market. even though Canada outage is cleared by July end, Venezuela will continue to drop the production. Analysts are anticipating higher oil prices amid tightening of markets.
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