Crude tumbled to two weeks low amid augmented trade war between U.S.-China.
WTI Crude oil Nymex September future prices failed to mark a rally despite fell in the weekly stocks and later on, prices nosedived to $53.10
a barrel on Friday, last week after China announced tariffs on US goods, including crude oil that upped demand and recession fear amongst the trader.
Earlier this month, prices got respite when MR Trump announced duty delay in some of the Chinese goods until December 01 but last week China imposed duty on certain fresh US products that once again gave fresh air to the prolong trade war concern, sending oil market sharply lower on Friday on economic recession woes.
In retaliation, President Donald Trump said he was ordering U.S. companies to close operations in China and make products in the United States.
Looking forward we need to see how Saudi Arabia and OPEC+ managed to defend the tumbling oil prices. Saudi Arabia had already announced cut in its production by 700,000bbl to keep its crude oil exports below 7 million barrels per day in August and September. Now, what else we can expect, probably deeper cut by OPEC+ otherwise downside risk will remain intact.
Crude oil Range Prices are likely to remain in $50-$57.5 range, break below $50 will worsen then sentiment, leading to downward move towards $45
Crude MCX weekly range is seen in Rs3710 to Rs3920 band.
Story by Shelly Airan for tarunsatsangi.com