Crude prices tumbled amid demand worries because of on going trade spat between US and China, slowdown in global economy and rise in OPEC inventory first in 2019 led by rise in Iranian exports despite sanctions.
US-Sino trade war escalated further after U.S. tariffs on Chinese goods and Chinese tariffs on U.S. goods came in effect over the weekend.
Sanction by US have almost ruined Iran’s export by 80%. But despite it, Iranian exports of oil products such as fuel oil and liquefied petroleum gas (LPG) have remained stable in recent months and increased last month.
Adding to bearishness, US Dollar Index, which is negatively correlated to crude, has surged to 99.25, the level not seen since May 2017.
Crude MCX range for the day is seen between Rs3901 to Rs4030.
Story by Shelly Airan for tarunsatsangi.com