Brent and NYMEX earn in Asia as traders look ahead to API estimates
On Tuesday, crude oil prices held their revenues with traders cautious after bearish supply forecasts unsettled the energy market overnight and also ahead of industry estimates on American stockpiles.
The American Petroleum Institute is expected to publish its estimates of American crude and refined stockpiles late on Tuesday, with the US Department of Energy to issue its own more closely-watched data on Wednesday.
In New York, September delivery WTI crude futures soared 0.23%, hitting $43.23 per barrel, while October delivery Brent crude futures soared 0.33% at $45.28 per barrel.
Overnight, oil futures edged down abruptly, going down to a new three-month minimum, as continuing concerns regarding global oversupply as well as a resurgent American dollar remained in focus.
During Monday's trading session, crude sagged to its lowest value since late-April as market participants reacted to further indications of a supply glut on global energy markets.
Gold dips towards 1-month minimum ahead of Fed gathering
On Tuesday, gold kept extending its losses from the previous session during European trade, going down towards a one-month minimum, as market participants readjusted their trading positions ahead of the Fed’s two-day monetary policy gathering due to start later this day.
As a matter of fact, the Fed isn’t supposed to take action on interest rates at the conclusion of its gathering on Wednesday, though market participants are on the verge of scrutinizing its policy statement for new hints as for the timing of interest rate lifts within the next several months.
In New York, December delivery gold futures sank 0.18%, being worth $1,324.80 per troy ounce. Yesterday, the given commodity dipped to a session minimum of $1,311.10 per troy ounce, just higher a one-month minimum of $1,310.70, as renewed hopes for a Federal Reserve rate lift later this year drove the greenback.
A recent string of better than expected American data revived rumors that the Fed is going to lift interest rates before the end of 2016. Currently, interest rate futures are pricing in a 52% chance of a rate lift by December, compared to less than 20% the previous week and up from 9% at the beginning of this month.
In Tuesday's trading session, oil prices fell for the second consecutive session by US dollar rose despite new figures showed that oil stockpiles fell slightly, according to Reuters updated.
American Petroleum Institute (API) published US crude stocks fell 2.3 million barrels last week, higher than a decline of 2.1 million barrels as a forecast of experts. Today, the US Energy Information Administration (EIA) will provide data on the official oil reserves. Earlier, US gasoline supplies fell for 8 consecutive weeks.
Typically, such information will help the oil price increase, but yesterday, the market's attention again focused on fuel supplies in the US have risen too high in the summer.
In recent weeks, when storage places have run out of fuel on the bank, the US energy companies stored excess products in ships near the coast. Many analysts point out, even if crude stocks fall, increased fuel output still makes the market very nervous.
On the London market, Brent delivery August fell 30 cents or 0.6% to $46.66/barrel. In New York, light sweet crude WTI fell 59 cents or1.3% to $44.65/barrel, WTI oil price in the previous trading day lost 1.6%.
The difference between the Brent price and WTI oil price was the highest level since late April 2016.
Yesterday, US dollar suddenly rose to the 4-month high against many major currencies of the world, increasing Dollar generally has a negative impact on oil prices.
In Libya, a pretty big strike of workers in energy sector erupted in the port area to the east of Libya, according to initial estimates, the strike caused the Libyan oil exports falling 100 thousand barrels/day.
The published new data showed that India, a country consumes a lot of energy products, had strong oil imports in June so that Iraq and Saudi Arabia exported more oil. June exports of these two countries are much higher than in 2 previous months . Currently, Iraq is providing more than 20% of oil imported into India.
Many experts predict in the near future India will continue to buy more energy products because the government is aiming to build three storage places of energy products. India's import will increase an estimated 91 million barrels of oil from now until 2020.