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As of this writing, crude oil prices are trading almost flat at $96/bbl in international market although price is showing a bit of weakness in Asian trading on Tuesday morning.
Concern of China easing after property price rose high in July is weighing in Asian equities market. Thus, lower equity market might be weighing on oil futures prices.
Ahead of tomorrow’s meet of Greece Prime minister with Luxemburg Prime Minister to discuss Greece request on extension of Fiscal adjustment program, Euro is gaining some points. Thus, optimism from this week’s meet in order to extend its time period for austerity may limit the fall in oil prices. There are no major economic releases due for today.
As per US Energy department, crude oil stocks are likely to increase along other petroleum stocks for the first time in last four weeks of time. Increase in import and concern of lower demand may create higher stocks. So, higher stocks level may drive oil prices low. As per National Hurricane Center, there is 30 percent chance of tropical cyclone formation, which may not create much impact on oil production and supply. ( a side note, hurricane season runs from late July to early November )
From PV-O analysis, a fall in crude oil prices and higher volume and open interest indicates that investors are ready to take the bearish market in this commodity.
Markets are no longer paying much attention to the headline grabbing rhetoric from Israel and the violence in Syria seems to have subsided
Natural gas prices are trading below $2.770MMBTU in international market with loss of more than 0.20 percent from yesterday’s closing. As per US Energy department, natural gas storage has increased by 20 BCF, lower than prior week due to fall in supply in the last week. However, US consumption has been fallen by more than 2.74 percent and demand declined by 2.43 percent in the last week.
However, demand was at 11 percent high during the same period in the last year. On the other side, declining consumption due to mild weather condition may weigh on gas prices in today’s session. As per US weather channel, temperature is likely to remain normal which may not pull gas demand high.