Oil Prices Continue To Decline

Oil prices returned to their down trend after gaining on Thursday. WTI crude oil is down 21 cents to trade at 93.75 while Brent Sea oil was down 18 cents at 102.49 after climbing from the 101 price level on Thursday.

European shares ended the day in the green on Thursday, despite some disappointing data from the euro zone, as investors focused on central bank monetary policy. U.S. stocks climbed on Thursday, with the S&P 500 toppling another record, as investors embraced upbeat economic reports. Asian indices traded higher on Friday, following a positive lead from Wall Street overnight, but trading remained light as investors await possible clues about interest rates at an annual meeting of central bankers in Jackson Hole.

Strong European and US data printed in a positive mode on Thursday giving implied oil demand a lift. Manufacturing activity slowed in the euro area and China as rising political tensions threaten to weaken trade and damp the outlook for the global economy.  Euro-area consumer confidence declined in August as escalating political tensions in Eastern Europe threaten the region’s already faltering economic recovery.  European markets are trading in green on better French and German PMI data indicating industrial growth in the region.  The world’s top two crude oil benchmarks have fallen by more than $10 a barrel since June on a build-up of supply in the Atlantic Basin and diminishing worries over the risk that conflicts in the Middle East would hit oil production. This weakness is continuing in today’s sessions WTI crude oil prices declined by around 0.7 percent trading at $92.81/bbl

US Fed Chief Janet Yellen will address at Jackson Hole regarding Labor conditions in US. Early Asian markets are up on expectations that she may continue to hold dovish stance on interest rates, means may not raise rates immediately. However any indications of earlier rise in rates in US may lead to decline in markets. Continued strength in dollar index indicates a strong US economy hence change in interest rate outlook may happen in US sooner. Market may gain volatility globally.

US natural gas is trading at 3.869 easing 12 points after climbing on Thursday the release of EIA inventory reports. U.S. natural gas futures jumped nearly 2 percent on Thursday as traders looked beyond a bearish build in stockpiles to focus on warm weather forecasts in the near-term that could bump up the use of gas to generate power for air-conditioning.