Crude dropping down on demand concern due to retching up of U.S.–China trade skirmish. Even, a drop-down in the crude oil stockpiles as per API failed get sporadic support as it fell lesser than expected.
U.S. crude inventories fell by 3.4 million barrels in the week ended Aug.2 to 439.6 million barrels, compared with analyst expectations for a decrease of 6.02 million barrels.
Crude oil remained under pressure as investors continued to grappled with ongoing trade war. Brent prices have plunged more than 9% in the past week after U.S. President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports starting on Sept. 1, sending global equity markets into a tailspin.
Worth noticing is that tensions in middle-east and fresh sanctions on Venezuela by the United States also failed to lend any respite.
Tensions in the Middle East have heightened in the wake of attacks on tankers and U.S. drones, raising concerns over passing through the Strait of Hormuz, a key shipping artery of global oil trade, sending one third of middle-east oil to the world.
Looking forward, $61 will act as formidable resistance while, immediate support is at $50/barrel if that is taken out will take the prices towards $45/$42.5
Story by Shelly Airan, tarunsatsangi.com