On Wednesday, WTI Crude prices ended higher by 1.2 percent to close at 61.4 per barrel. U.S. sanctions on OPEC members (Iran & Venezuela) led to further tightening of supply in global market amid output cuts by OPEC and its allies which led to a rally in Crude prices. The U.S. made it clear that it won’t grant any further waivers to the importers of Iranian Crude without facing U.S. sanctions. As per report from the Energy Information Administration (EIA), U.S. Crude inventories declined by 4 million barrels last week. Even the crude production in US has slowed down by 100,000 bpd amid declining imports which might support the prices.
Outlook
Escalating trade tension between U.S. and China might raise demand concerns for Crude in turn push the prices lower. On the MCX, oil prices are expected to trade lower today, international markets are trading lower by 0.90 percent at $61.56 per barrel.
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