Crude Oil price action retraced after retesting 50 Day MA at 87.52. Traders reacted to the news that Abu Dhabi started exporting Crude Oil using the pipeline that bypasses the strait of Hormuz.
The use of pipeline is reducing exposure to geopolitical risk regarding situation in Iran.
Also prices dropped on speculation that Chinese demand is slowing after comments by Premier Wen Jiabao.
WTI Crude prices for August delivery dropped to 86.46 a barrel. Brent Crude for August settlement traded at 102.64 a barrel.
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