Following the announcement by EIA, the WTI lost 2.78 percent to 67.25 USA dollars, while Brent decreased 2.55 percent to 72.75 dollars. In addition to crude oil and liquified natural gas, other listed products include diesel, coal, chemicals, cars, steel products and medical equipment.
The markets are trying to stabilize after yesterday's steep 3 percent sell-off.
From November, Washington will also target Iran's petroleum sector. In addition, Libya reopened some of the closed oil ports, which raised the market expectations of the growth of oil supplies. The official selling price for Oman crude oil during July 2018, for the delivery month of September 2018, settled at US$73.17, lower by US$0.44 only compared with June trading prices. "The dips on the dollar still seem to be bought so I am skeptical to call a bottom on gold", said Philip Ho, who is a trader based in Hong Kong. The trading price ranged between US$76.11 per barrel, and US$69.71 per barrel. Its 50% to 61.8% retracement zone is $67.99 to $66.81.
Not just China but Russian Federation too is determined to continue oil and gas trade with Iran. Currently, the market is testing the weak side of this zone.
Meanwhile, retail trader data show 65.3% of traders are net-long, with the ratio of traders long to short at 1.88 to 1. Its retracement zone at $72.33 to $70.67 is now being tested.
Unipec said that it expects to trade up to 300,000 barrels per day (bpd) of U.S. crude oil by the end of the year, about triple its trading volume of USA oil last year.
Oil prices started the week with gains due to the focus on supply disruptions and a potential impact of US sanctions on Iranian crude oil output. China, however, removed crude oil from the list of products up for tariffs beginning on August 23. This affects future demand.
However, the oil price faces a major hurdle at the $70/barrel level.
Sen added that Iranian production falling by 1.5 million bpd by year end could wind up being a conservative figure, and Bank of American Merrill Lynch pointed out in a research note that "for every 1 million bpd imbalance, we see a price impact on Brent of around $17". If they erode confidence in demand enough then support is likely to continue to erode until buyers find value. Investors fear a potential slowdown of the world's two largest economies would slash demand for commodities. The Shanghai Composite Index jumped 1.8 per cent to 2,794.38 and Hong Kong's Hang Seng index advanced 0.9 per cent to 28,607.30. Because of this, it shows a slowing of demand, and most certainly trouble for oil markets overall.