Crude & Brent Oil Fundamental Analysis – September 1, 2015 – Forecast

Analysis and Recommendations:

Crude Oil gave up $1.02 to trade at 44.20 after having a two day rally at the end of the week. Traders pushed up prices as rumor had OPEC considering cutting back production. Brent Oil gave up $1.31 to 48.74. Oil prices fell in early trade Monday, reversing some of the gains made late last week amid concerns the latest rally in the oil and commodities markets would be difficult to sustain.

Investors are bracing for another week of volatile trading, with a focus on China as well as the timing of a U.S. interest-rate increase. Oversupply concerns also remain persistent as seasonal summer demand for oil fades and oil refineries slow operations.

In highly volatile trading Nymex crude and Brent crude gained 11.8% and 10.1%, respectively last week. In the same week, oil prices had slipped to multiyear lows, but clawed back gains to rise 16%-17% over the final two trading sessions.

On Monday, oil took cues from a softer start by Asian markets, with the Shanghai Composite Index down around 2% after Beijing placed a 16 trillion yuan ($2.506 trillion) cap on local government debt over the weekend, the latest move to address a slowing economy.

Mixed signals by US financial policymakers last week on whether the US Federal Reserve would raise interest rates next month was weighing on sentiment, Ang said.

Some Fed policymakers left the door open to a September interest rate hike at an annual central bankers meeting on Friday in comments that appeared to contradict those by the New York Fed president earlier in the week who said a rate increase seemed “less compelling”.

The comment came after turmoil in global markets in recent weeks following China’s currency devaluation and concerns over its slowing economy.

Investors are eyeing a slew of economic data, including key US non-farm payroll data, later this week that could give direction on a possible US rate hike when Fed policy makers meet on 16-17 September.

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:

Tuesday, September 1, 2015

Government Bond Auctions

Date Time Country

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