27-08-2018 03:00 PM
Oil prices fell a little on Monday on worries that a U.S.-China trade heated discussion will wear away global economic growth, even though alarming U.S. sanctions against Iran's oil segment kept crude from falling more according to traders.
Crude Oil was trading lower at $68.69 at the time of preparing his report.
According to Mr.Ponmudi, Market Expert & Managing Director of Enrich Commodities – Oil prices are supported by the dropping U.S. rig counts and last week's decline in U.S. inventories despite a long-drawn-out U.S.-China trade conflict that could dampen down global development and weigh on oil demand.
He also added, regardless of growing distress about possible oversupply, the markets will persist to get a boost from U.S. sanctions against Iran.
Energy services firm Baker Hughes said U.S. energy companies slashed nine oil drilling rigs the previous week, falling to 860, the majordecline since May 2016.
Washington will target Iran's oil exports with sanctions from November.
Iran, which is a OPEC member has exported around 2.5 million barrels per day of crude oil so far this year. Most market expertsanticipate this figure to drop by at least 1 million bpd once sanctions kick in.