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Finally the day has arrived the much awaited 31st August where all the eyes are at Fed Chairman’s Bernanke speech in Jackson Hole’s meet. Today Mr. Bernanke has more press coverage then the President or the Queen and more fans and headlines then the leading actor or singer. Move over Madonna.
Thoughts of easing by the Federal Reserve are there overshadowing the global financial market which is reflecting on the regional equity market.
Contraction in Japan’s industrial production reported today along with lower manufacturing activities concern in China is adding pressure on markets.
The third largest consumer of energy is Japan’s vehicle production which has increased by 16.7% in the last month, but at a substantially lower increase then the prior month of 20% rate. This will affect the import of crude oil to Japan and lessen demand.
The National Hurricane Center, says that tropical storm Isaac has turned as depression inland, which eased the concern of supply disturbances.
The U.S. Treasury Department, International Energy Agency, a 28-member group of oil consuming countries are prepared to call upon a meet to take appropriate action to ensure that the market is fully and timely supplied.
Crude oil prices are trading almost flat at $94.66/bbl in the international market.
From economic data front, the eurozone unemployment rate is likely to remain high at 11.3%, whereas German retail trade may climb up slightly. The euro is likely to remain subdued for today’s session ahead Mr. Bernanke.
Form US, declining wholesale inventory may reflect on higher factory orders for the last month. So, a little spike can be seen during US session. Ahead of the economic symposium in Jackson Hole, oil prices are likely to trade under pressure with a speculation of releasing oil reserves and prevailing easing concern by major central bank.
Natural gas prices are likely to remain under pressure today. Yesterday the US energy department report showed that, gas storage has been increased by 66BCF, higher than prior week and survey also. Though consumption has been increased in the last week after two weeks of fall, the demand level is still low in comparison to last year at this same time. Active hurricane season has created supply disturbances and weekly supply declined by 2.84% in the last week.