11-07-2018 04:30 PM
Oil prices dropped on Wednesday after U.S. President Donald Trump lay a threat that he would charge new excise on China, raising a trade disagreement that could dispirit energy demand.
WTI crude oil was trading at $ 73.47 at the time of preparing this report.
The presence of tax on a further $200 billion of Chinese supplies pushed commodities lower together with stock markets, as worries between the world's biggest economies strengthened.
According to Mr.Ponmudi, Market Analyst and Research Head of Enrich Commodities – There will be a collision on global growth and demand if these taxes are introduced.
Libyan oil output dropped to 527,000 barrels per day (bpd) from a high of 1.28 million bpd in February after the port shutting down.
Mr.Ponmudi also added that it is a question of how fast the exports can come again as normal upon lifting the force majeure. On the other hand, from the supply angle, it is a sign of a great help.
According to a statement made by the U.S. Secretary of State Mike Pompeo - Washington would mull over requests from a few countries to be let off from permit due to go into effect in November to prevent Iran from exporting oil.
The outlook of permit on oil exports from Iran, has aided push up oil prices in recent weeks with both crude contracts trading near 3-1/2-year highs.
Supply to the U.S. market has also been compressed by the loss of some Canadian oil output.
According to the American Petroleum Institute – The U.S. crude inventories dropped the previous week by 6.8 million barrels.