News | |
Previous | |
Forecast | |
Analysis | Crude oil retreated on Friday trading after the release of grim reports from major economies showing that the global slowdown will probably continue, thereby reducing demand on oil. Oil for November delivery is currently trading around $80.80 a barrel after recording a high of $83.20 and a low of $80.06. However, on the weekly basis, crude prices are showing some incline. A drop in U.S. consumer spending, China's manufacturing gauge and German retail sales added to worries that major economies may relapse into another recession. After knowing the result of the German vote yesterday, which showed the approval of expanding the EFSF, giving some optimism in markets, eyes went back on fundamentals. Next week, the main focus will be on manufacturing and services data from major economies as investors aim to see the extent of the slowdown in the last month of the third quarter. Moreover, the EIA report release this week showed that the U.S commercial crude oil inventories increased by 1.9 million barrels from the previous week. At 341.0 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year. Total motor gasoline inventories increased by 0.8 million barrels last week and are upper limit of the average range. By extension, finished gasoline inventories remained unchanged while blending components inventories increased last week. Distillate fuel inventories increased by 0.1 million barrels last week and are in the upper limit of the average range for this time of year. In the FOREX market, the dollar took advantage of the worries spreading after the release of downbeat reports from major economies which enhanced demand on the dollar as a refuge. The dollar index, which tracks the dollar movements versus a basket of major currencies, edged up to a high of 78.63 compared with the day's opening level of 77.86.
|
To ensure you receive such e-mails in the future, please add ecPulse.com to your list of approved senders.
No comments:
Post a Comment