By Srinivas Chowdary Sunkara // petrobazaar // 11 May 2018 11:44 AM IST
Is Rally lost steam?
Crude futures closed around 0.3 percent higher in both the Newyork and London markets after trading down most of the yesterday's session. It seems that the bulls lost steam on concerns of Saudi's ability to counter the Iran sanctions to step in with more crude supplies. Chinese crude futures continued rally to the highest levels since the launch of futures. Igniting tensions in Islamic nations over Iran sanctions, strong growth in demand and global oil glut are driving the prices up amid the concern over surge in U.S production.
Crude price update:
On Thursday, WTI futures for June delivery closed up at $71.36 a barrel on Nymex while Brent futures to be delivered in July were up to close at $77.47 per barrel on London based ICE futures Europe exchange. Asian markets for crude are trading in bearish mood at the time of reporting.
Its a party time for bulls as crude came to hover at higher levels as expected. Now it is the time to watch how other peers of the deal manage to protect their bilateral trades. Saudi is looking for highest oil price to launch IPO, while Iraq and Russians are to protect their market share. Will Saudi manage to fill the supply gap with it's members or allow U.S to open taps is another question in mind. Markets are carefully looking at each factor and need to be wise in investing as speculator entered into, Technicals rather than fundamentals play a role.
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