CAPITALSTARS MCX COMMODITY CRUDE OIL NEWS UPDATE : 15 October 2019

Energy Preview: Supply Worries Push Up Crude Oil

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Crude fell by 2% in yesterday’s session as optimism of trade negotiation faded as China indicated further discussions were needed and the U.S. Treasury Secretary reported that next round of tariffs on Chinese imports are still set to take effect on Dec. 15 if deal has not been reached by then. Prices for further pressurized as weak Chinese economic data for Sep added to lingering concerns as China's exports and imports shrunk more than expected in Sep. Rumors in markets stated that China wishes Trump to scrap a planned tariff hike in Dec in addition to hike scheduled for this week, something administration hasn’t yet endorsed. Prices got some support from worries that further escalation along Syrian and Turkish border could affect output or exports from Iraq as Syrian troops entered Turkey. Reports suggested that compliance of OPEC was seen at above 200% in Sep which is supportive for prices. The focus of investors is currently focused on uncertainty around trade talks and weak global demand outlook. 


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