By Srinivas Chowdary Sunkara // petrobazaar // 01-05-2018
Crude oil prices are hovering around $75.
Oil prices advanced on Monday, reversing earlier losses after Israel statement on holding evidence on Iran's nuclear deception, which is supporting the likelihood of U.S reimposing the sanction on Iran by May 12th. Increased rig numbers during the week end caused a concern for earlier losses yesterday. On Tuesday, Oil prices extended gains on Iran sanctions worries buoyed by Israel comments. Asian trade is quite as major markets like India, Singapore and China are following holiday.
Crude oil prices update
On Monday, U.S crude futures for June delivery rose about 60 cents or 0.88% to close at $68.57 per barrel on Nymex while Brent June futures jumped 53 cents or 0.71% at $75.17 a barrel on London based ICE futures Europe exchange. Brent June futures expired yesterday. In Shanghai, front month futures contracts gained 2.2 Yuans or 0.5% while Indian crude futures on MCX have gone up by Rs.36 to close at Rs.4583.
Increase in Rig numbers are pushing up U.S production numbers and a fear of bullish numbers are holding a hand under the price. even if U.S reimposes sanctions on Iran, fundamentally, Market will not see any drop in production as U.S exports of 2.3 Mbpd will compensate, which is an increase of 1.5mn bpd compared to 2015. In my opinion, A market scenario like this will not follow fundamentals and market wont see a price drop in near future.
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