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Crude Oil Declines amid Turkish Crisis Concerns, Other Negative Fundamentals

August 13, 2018 at 18:05 by Vladimir Vyun

Futures for crude oil attempted to hold ground today but failed and are now trading far below the opening levels. The reason for that was concerns about potential spillover of the Turkish financial crisis to other economies and resulting risk aversion. Oil is a risk-sensitive commodity, tending to lose value in times of fear and uncertainty.

The Organization of Petroleum Exporting Countries released its Monthly Oil Market Report today, predicting an increase of global oil demand to 1.64 million barrels per day — 20,000 barrels per day less than in the previous month’s forecast.

On Friday, Baker Hughes reported that the number of US oil rigs increased by 10 last week.

Contract for delivery of WTI crude oil in September dropped as much as 2.1% to $66.21 per barrel as of 18:53 GMT on NYMEX today. October contract for Brent crude tumbled 1.68% to $71.59 per barrel on ICE.

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