Crude oil has been on an upward trajectory, but we are seeing a gradual slowdown in buying, which points towards a correction in prices. The commodity touched its highest level since November, driven by turmoil in Libya along with ongoing production cuts pledged by Opec and its allies, and US sanctions against Iran and Venezuela.
However, renewed concerns over rising US inventory and production as well as concerns over a global economic slowdown helped put a lid on the prices.
On the demand front, China’s state-owned energy giant Sinopec had resumed buying US oil, which was bullish for the market. The EIA reported that US crude exports to China had dried up from mid-2018 through recent weeks, after having averaged over 300,000 bpd in first half of last year. Read More