Analysis and Recommendations: Crude Oil went looking for a new bottom trading as low as the $37 price before leveling at 38.83 down $1.62 on the day.
Analysis and Recommendations:
Crude Oil went looking for a new bottom trading as low as the $37 price before leveling at 38.83 down $1.62 on the day. Brent Oil outpaced WTI falling 1.80 to 43.66. Oil prices hit 6-1/2-year lows on Monday after Chinese stock markets suffered their biggest one-day fall since the global financial crisis, intensifying worries over the outlook for global oil demand.
Inaction by the Chinese government following an 11 percent rout in local stock markets last week encouraged a free-fall in global equities and other commodities on Monday. “Today’s falls are not about oil market fundamentals. It’s all about China,” Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt, told Reuters Global Oil Forum.
Steep losses last week capped the contract’s longest weekly losing streak since 1986. U.S. crude is now almost 17 percent below its opening price at the start of the month and Brent is down more than 10 percent.
However, Iran’s Oil Minister Bijan Zanganeh said on Sunday that holding an emergency OPEC meeting could be “effective” in stabilizing the oil prices, Iran’s oil ministry news agency Shana reported.
There was a similar call by Algeria earlier this month, but other OPEC delegates said no meeting was planned. “Supply-side news continues to dominate the market … Fears of surging Iranian oil are likely to increase further after Iran’s oil minister stated the country had plans to raise oil production at any cost,” ANZ said in a note on Monday.
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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Today’s economic releases:
Cur. |
Event |
Actual |
Forecast |
Previous |
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USD |
FOMC Member Lockhart Speaks |
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Upcoming Economic Events that you should be monitoring:
Tuesday, August 25, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
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EUR |
German GDP (QoQ) (Q2) |
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0.4% |
0.4% |
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EUR |
German GDP (YoY) (Q2) |
|
1.6% |
1.6% |
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CHF |
Employment Level (Q2) |
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4.225M |
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EUR |
German Business Expectations (Aug) |
|
102.0 |
102.4 |
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EUR |
German Current Assessment (Aug) |
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113.9 |
113.9 |
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EUR |
German Ifo Business Climate Index |
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107.8 |
108.0 |
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USD |
S&P/CS HPI Composite – 20 n.s.a. |
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5.1% |
4.9% |
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USD |
Services PMI (Aug) |
|
56.0 |
|
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USD |
CB Consumer Confidence (Aug) |
|
93.3 |
90.9 |
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USD |
New Home Sales (MoM) (Jul) |
|
6.0% |
-6.8% |
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USD |
New Home Sales (Jul) |
|
510K |
482K |