Saturday , July 31 2021

Oil will drop to 7 months when global supply problems are made easier

Oil dropped seven months of low concern despite the US sanctions on Iran forcing global deliveries.

Raw material was set to New York on Monday, climbing earlier when US punishments against OPEC No. 3 were officially punished. The Trump administration admitted abandoning China and seven other major buyers in order to continue to buy Iranian crude oil. At the same time the expansion of domestic stocks bothered concerns of tightening global supplies.

"The reality of the expectation is that there is some Iranian oil left but it will still be the amount that the market will lose," says John Kilduff, New Capital LLC, a hedge fund operating in New York.

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Oil Liu was out of the four-year high last month as speculations grew as Washington admitted dropping out of lower gasoline prices following the mid-term elections in the United States, while other oil exporters committed themselves to compensate for supply disruption. At the same time, the trade war between the world's two biggest economies raised concerns that fuel demand will suffer, even though President Donald Trump said that he wants to reach an agreement with China.

According to Bloomberg's forecast, raw materials were likely to increase by 2.1 million barrels in the central pipeline center in Cushing, Oklahoma, last year.

The December delivery of medium-crude oil in West Texas lost 4 cents to end the session to $ 63.10 per barrel on the New York Mercantile Exchange. The future fell 6.6 percent last week. On the Monday, the total turnover was around 10% below the 100-day average.

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Brent futures in January liquidation increased 34 cents to settle for $ 73.17 in the ICE Futures Europe exchange in London. Global comparable crude oil was traded to WTI for $ 9.96 in the same month.

US Secretary of State Mike Pompeo said that exceptions allow only the supply of Iranian raw material temporarily. Iran can either change its behavior or see its economic collapse, he said.

© 2018 Bloomberg L.P.

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