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Crude oil set for biggest monthly decline since July 2016

31-Oct-2018

NYMEX crude oil has fallen over 9% in October and is set to end the month with the biggest decline since July 2016.

Crude has been under pressure weighed down by demand concerns amid uncertainty about health of major economies, sell-off in US equity market and rise in US crude oil stocks.

US DJIA index slumped over 10% from record high level set in early October amid concerns that import tariffs and higher interest rates will affect profitability of US companies.

Risk sentiment is weak also amid slowdown in Chinese economy, concerns about Brexit and Italy budget crisis. Trade worries resurfaced as US threatened to impose import tariffs on rest of Chinese goods if no deal is reached at a meeting in November.

The two major events for crude oil in the near term is US imposition of Iran sanctions on November 4 and mid-term elections in US on November 6. These events will affect supply outlook as well as risk sentiment and thereby crude price

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