Crude & Brent Oil Fundamental Analysis – August 26, 2015 – Forecast

Analysis and Recommendations:

Crude Oil gained $1.40 today as traders took advantage of sharp market declines. Oil is trading at 39.64 while Brent Oil added $1.47 to 44.16. Although the crude oil price edged up a little on Tuesday but still stood close to its six and half year low. This is some respite from the earlier session where the crude prices saw a downward spiral of almost six percent as the China equity hubbub sent a wave of anxiety in the markets all over.

With the weakness in China’s economy, the Asian stocks on Tuesday appeared to be susceptible to another round of sell-off as investors are gripped by concerns that the Chinese economy will not be able to pick up its growth soon.

The crude oil markets are reacting carefully and during the early trading remained at levels that are comparable to the prices during the peak global financial crisis period in 2009. It suggests that bleak Chinese economy which is also the second largest oil consumer in the world is making oil futures as vulnerable as the oversupply glut worries that weighed down on the market for more than one year.

A day after oil prices plunged to six-year lows amid concerns over a drop in Chinese demand and increasing crude oil supplies, markets recovered slightly Tuesday. However, prices held near Monday’s lows as Chinese shares lost another 7.6 percent during the day.

Even before Monday’s rout in Chinese markets, the oil market had been reeling from massive oversupply caused by continued production by OPEC member nations like Saudi Arabia. Crude prices have also been pushed down as fracking in the United States has increased natural gas output close to a multi-decade high.

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:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, August 26, 2015

Government Bond Auctions

Date Time Country

Aug 25 00:00 UK Announces details of Jan 2021 gilt

Aug 25 17:30 Italy Announces details of BTP/CCTeu on 28 Aug

Aug 25 19:00 US Holds 2-year note auction

Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ

Aug 26 19:00 US Holds 2-year FRN note auction

Aug 26 12:05 Norway Holds bond auction

Aug 26 19:00 US Holds 5-year note auction

Aug 26 19:00 US Holds 2-year FRN auction

Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds

Aug 27 19:00 US Holds 7-year note auction

Aug 28 11:10 Italy Auctions BTPs/CCTeus

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep