Crude oil prices continue to inch up supported by increased investor interest in the commodity amid reports of a slowdown in US oil production, however, analysts warn that weak fundamentals for oil remain intact. "We believe the optimism among investors vis-à-vis oil is exaggerated. This has given rise to considerable correction potential which could lead to a sharp fall in prices at any time," said a note from Commerzbank Corporates & Markets. Brent crude oil traded close to $59 per barrel on Monday, as many investors increase their bets on higher prices, with their net long positions hitting highest level since August 2014.
Inventories of U.S. crude fell by 1.351 million barrels for the week ended Aug. 3, missing expectations for a draw of 2.800 million barrels, according to data from the Energy Information Administration (EIA).
The smaller-than-expected draw in crude supplies came as imports rose by about 2.64 million barrels a day (bpd) and exports rose by 5.40 million bpd, data from EIA showed.
Gasoline inventories unexpectedly rose by 2.900 million barrels, confounding expectations for a draw of 1.700 million barrels, while supplies of distillate – the class of fuels that includes diesel and heating oil – rose by 1.230 million barrels, against expectations for a build of 0.220 million barrels.
more at source: https://www.investing.com/news/commodities-news/crude-oil-prices-settle-at-sixweek-lows-as-uschina-trade-war-intensifies-1566118