By Srinivas Chowdary Sunkara // petrobazaar // 2nd August, 2018.
Brent fell further to $72.34 by 2.57 pct and WTI closed down by 1.6% at $67.66 a barrel last night. Traders preferred to sell off to wait and watch amid expected further U.S sanctions on China goods. Traders are more concerned that escalating the trade tensions will affect oil demand. The bearish weekly stats also fueled price to fall. Today Asian markets opened in green after digesting the report.
I felt EIA report is a healthy report as the gasoline demand picked up and refinery utilisation capacity at record high levels. EIA surprisingly reported a build in crude stocks as against estimated fall by analysts. It seems that the Gulf coast contributed major build as the exports were slid from the hub.
Today's Supply side story is interesting. China announced to buy Iranian oil at high discount. Kuwait ticked up for further supplies. Russia determined to open taps. Saudi initiated to production up as per survey. OPEC and team are enjoying to supply more oil with a big price. Now what will U.S do? May be Trump don't get call from Mr.Rouhani and U.S will put sanctions and tariffs in the name sake to move things as usual. Hey Bulls, wait for your turn as you dont have a room to play now. Good day.
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