Crude prices sag as short-covering surge fizzles

August 5, 2016

On Friday, crude prices dropped because a crude and refined product oversupply weighed on financial markets and traders considered a probable stutter in Chinese imports, concluding a two-day short-covering soar.    

US West Texas Intermediate crude futures were worth $41.59 per barrel, showing a 0.81% drop. Meanwhile, international Brent crude futures slumped 0.9%, trading at $43.89 per barrel.

Financial analysts point out that crude markets are currently under renewed pressure from overproduction in crude as well as refined products, which has left onshore storage tanks filled to the rims and also triggered the chartering of tankers to store unsold stuff.

On the demand side, BMI Research reported that Chinese imports were heading south from records set in 2015 and also this year.

Apart from that, Chinese near-term crude imports will most likely remain sluggish because of a combination of factors, such as brimming commercial fuel stockpiles, a more gradual pace of strategic stock building and a slower off-take growth among teapots.  

Publication source
FBS information  FBS reviews

September 30, 2016
The OPEC greases the wheels for oil
The global equities rally led by the gains in the energy sector after the OPEC members cut a deal in Algiers, despite the market scepticism and repeated statements that the Oil officials in Iran and Saudi Arabia are not able to find a middle ground in the current conditions...
September 30, 2016
Opec deal no certainty
In a huge surprise to the market, members of the Opec cartel agreed to cut production by as much as 700,000 barrels a day with some predicting that this may be the start of a new upward trend for oil...
September 30, 2016
Brent futures consolidated their gains
Brent rose in the European session after a surprised OPEC decision to cut oil output. Moreover, a draw in U.S. crude stocks gave an additional support for oil prices...

FBS Rating
XM Rating
HYCM Rating
FxPro Rating
OctaFX Rating
FOREX.com Rating

Banc De Binary Rating
TropicalTrade Rating
365BinaryOption Rating
Porter Finance Rating
TopOption Rating
Empire Option Rating