Crude prices tumbled last week, with WTI ending down 2.3 per cent and Brent 2.7 per cent.
The turmoil in US and global stock markets and the US dollar index hitting an 18-month high led to further drop in crude prices.
The market is getting cautious ahead of Iran sanctions and we have seen that major players, including the US and the UAE, are increasing their crude supply. Meanwhile, those like China are increasing their stockpile import ahead of potential supply disruption.
There are expectations that crude prices will harden on worries of tighter supply as Washington’s sanctions against Iran’s crude oil exports kick in this November. On top of that, data from Baker Hughes showed that the number of US drilling rigs rose by 2 this week to a total of 875, the highest since March 2015, which softened the prices.
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