Crude & Brent Oil Fundamental Analysis – August 20, 2015 – Forecast

Analysis and Recommendations:

Crude Oil traded in the red ahead of the weekly inventory report due in the US session to exchange at 43.10 after falling below the $43 level. Brent Oil gained 17 cents to 48.99 but seemed unable to break the $49 price.  Analysts said prices were unlikely to stage a sustained rally because the market remains awash with supplies from the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia.

Oil traders are also watching a report on US crude inventories in the week ending August 14 due later Wednesday to measure demand in the world’s biggest economy and large producer of shale oil. Analysts expect inventories to decline, but also said stockpile levels remain high after a weaker-than-hoped rise in demand during the summer driving season.

“Output in the US has turned out to be more robust than many had previously assumed, as shale firms have dramatically slashed costs and increased their efficiency rather than cutting production,” said Thomas Pugh, commodities economist at research firm Capital Economics.

Demand growth is not keeping pace with supply, especially with the slowdown in China, the world’s top energy consuming nation and its second-biggest economy.

Iran in July also reached an agreement with major world powers to rein in its nuclear ambitions in exchange for the lifting of crippling Western economic sanctions which have restricted its oil exports.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

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This Week in Petroleum
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Gasoline and Diesel Fuel Update
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Weekly Petroleum Status Report
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Today’s economic releases:

Upcoming Economic Events that you should be monitoring:

Thursday August 20, 2015

Government Bond Auctions

Date Time Country

Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz

Aug 19 11:03 Sweden Holds bond auction

Aug 20 10:30 Spain Auctions Bonos/Obligaciones

Aug 20 11:30 UK Auctions 4.25% 2036 Gilt

Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug