By Srinivas Chowdary Sunkara // petrobazaar // 5th Oct, 2018.
Brent futures tumbled by $1.71 with around 2 pct to settle at $84.58 while U.S crude lost heavily by around 3 pct to $74.33 a barrel last night. The spread was further widened to $10.25. Both the futures dwindled down from continuous sharp rally for last couple of days. Piling up of crude stocks at major U.S storage hubs, Producers signalling for opening taps to offset the maximum number of missing barrels from Iran after U.S sanctions are put in place in Nov. pushed down oil prices yesterday. Supply fears out of Iran sanctions loom continued to support oil prices at four year's high.
Apart from all these generic and market headlines, For me, The most significant observation from an article is that oil traders have piled into wagers that U.S crude oil could surge to $100 a barrel by next year, unimaginable due to record U.S production growth and relatively flat demand. Traders need to be careful that bearish factors like Saudis and Russians are into private agreement on supply increase and many emerging economies are hit with higher oil prices like India. Today global oil prices are trading up slightly from earlier closing levels. Good day.
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