Crude & Brent Oil Fundamental Analysis – August 6, 2015 – Forecast

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Updated: Aug 5, 2015, 14:57 UTC

Analysis and Recommendations: Crude Oil recovered 17 points as traders bought up the cheap commodity. Crude oil is trading at 45.92 below its support

Crude & Brent Oil Fundamental Analysis – August 6, 2015 – Forecast

Analysis and Recommendations:

Crude Oil recovered 17 points as traders bought up the cheap commodity. Crude oil is trading at 45.92 below its support level at 46.00 while Brent Oil was able to climb 24 cents to stay above the 50 level at 50.24. Offsetting at least some of that bearish sentiment, the American Petroleum Institute reported that U.S. crude inventories fell by 2.4 million barrels last week, more than the 1.5 million barrels forecast by analysts in a Reuter’s survey. Crude has come under pressure from signs of too much supply and too little demand. OPEC, which includes Saudi Arabia and other major crude producers, has been producing about 1.7 million bpd in surplus since deciding in November to favor market share over price defense.

The bearish momentum could drag crude oil prices lower. The nearest support for crude oil prices is seen at $44 per barrel. Prices hit this mark in March 2015. The ample supply concerns, record inventories, speculation of slowing demand, and the appreciating US dollar could drag WTI (West Texas Intermediate) prices lower. In contrast, the long-term lower crude oil prices could support WTI prices. The next resistance for WTI prices is seen at $55 per barrel. Prices hit this level in July 2015.

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This Week in Petroleum
Release Schedule: Wednesday @ 1:00 p.m. EST (schedule)

Gasoline and Diesel Fuel Update
Release Schedule: Monday between 4:00 and 5:00 p.m. EST (schedule)

Weekly Petroleum Status Report
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Today’s economic releases:

Cur.	Event	Actual		Forecast	Previous
CNY	Caixin Services PMI (Jul)		53.8	52.2	51.8
RUB	Markit Services PMI (Jul)		51.6	49.2	49.5
CHF	CPI (MoM) (Jul)		-0.6%	-0.4%	0.1%
EUR	Spanish Services PMI (Jul)		59.7	55.5	56.1
EUR	German Services PMI (Jul)		53.8	53.7	53.7
EUR	Markit Composite PMI (Jul)		53.9	53.7	53.7
EUR	Services PMI (Jul)		54.0	53.8	53.8
GBP	Services PMI (Jul)		57.4	58.0	58.5
EUR	Retail Sales (MoM) (Jun)		-0.6%	-0.3%	0.1%

Upcoming Economic Events that you should be monitoring:

Thursday, August 6, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Employment Change (Jul)		15.0K	7.3K
GBP	Manufacturing Production (Jun)		0.2%	-0.6%
GBP	BoE Inflation Report
GBP	Interest Rate Decision (Aug)		0.50%	0.50%
GBP	BoE MPC Meeting Minutes
GBP	BoE Gov Carney Speaks