Jul 10 • Market Commentaries • 3570 Views • Comments Off on Energy Update
Currently oil futures prices are trading below $85/bbl with loss of more than 1.4 percent from yesterday’s closing. Oil prices have slipped from its high as import of its second largest consuming nation China have fallen by more than 15 percent in the month of June. Crude oil imports have declined from 25.48 million barrels to 21.7million barrels in the last month, creating concern of lower demand. Other than this, Norway labor union strike has been called off, which had threatened to close production today onwards. Thus, Oil prices have taken negative cues from the above two major factors. Currently, most of the Asian equities are trading down as China imports have fallen the most, whereas exports are increasing.
A rise in US consumer credit is also creating concern of US economic growth. Lower manufacturing activities data from UK and France, are also expected to keep Euro under pressure which may drive oil prices northward. Other than this, US crude oil stocks are likely to fall, whereas increase in petroleum stocks is expected which may limit the fall in oil prices. Overall, we may expect oil futures prices to trade under pressure throughout the day.
Currently, gas futures prices are trading below $2.870/mmbtu with loss of more than 0.40 percent in electronic trading. Today we may expect gas prices to continue the positive trend supported by its intrinsic fundamentals. As per National Hurricane centre, there are 40 percent chances of tropical storm formation near eastern pacific region which may create supply concern to add positive direction in on gas prices. Consumption of power sector has also increased by 1.5 percent, which may support gas prices to remain on higher side. As per US weather forecast, temperature is expected to remain high in eastern region, which may create demand for gas consumption. However, the called off Norway Energy industry strike may limit the gain in this commodity. Investors are eagerly awaiting this week’s inventory, hoping for a drop in supply. Also the Japanese proposal to import US natural gas is expected to get favorable support.
In the US when there are seasonal demands on electricity the producers use Natural Gas for their excess production needs, putting a demand on supplies. This summer is beginning exceptionally hot.
« Forex Trading Market Review July 10 2012 Gold and Silver Review »
Energy Update
Jul 10 • Market Commentaries • 3570 Views • Comments Off on Energy Update
Currently oil futures prices are trading below $85/bbl with loss of more than 1.4 percent from yesterday’s closing. Oil prices have slipped from its high as import of its second largest consuming nation China have fallen by more than 15 percent in the month of June. Crude oil imports have declined from 25.48 million barrels to 21.7million barrels in the last month, creating concern of lower demand. Other than this, Norway labor union strike has been called off, which had threatened to close production today onwards. Thus, Oil prices have taken negative cues from the above two major factors. Currently, most of the Asian equities are trading down as China imports have fallen the most, whereas exports are increasing.
A rise in US consumer credit is also creating concern of US economic growth. Lower manufacturing activities data from UK and France, are also expected to keep Euro under pressure which may drive oil prices northward. Other than this, US crude oil stocks are likely to fall, whereas increase in petroleum stocks is expected which may limit the fall in oil prices. Overall, we may expect oil futures prices to trade under pressure throughout the day.
Currently, gas futures prices are trading below $2.870/mmbtu with loss of more than 0.40 percent in electronic trading. Today we may expect gas prices to continue the positive trend supported by its intrinsic fundamentals. As per National Hurricane centre, there are 40 percent chances of tropical storm formation near eastern pacific region which may create supply concern to add positive direction in on gas prices. Consumption of power sector has also increased by 1.5 percent, which may support gas prices to remain on higher side. As per US weather forecast, temperature is expected to remain high in eastern region, which may create demand for gas consumption. However, the called off Norway Energy industry strike may limit the gain in this commodity. Investors are eagerly awaiting this week’s inventory, hoping for a drop in supply. Also the Japanese proposal to import US natural gas is expected to get favorable support.
In the US when there are seasonal demands on electricity the producers use Natural Gas for their excess production needs, putting a demand on supplies. This summer is beginning exceptionally hot.
« Forex Trading Market Review July 10 2012 Gold and Silver Review »