On Friday, crude oil prices kept sagging further in Asia in subdued trade ahead of the latest count of American rigs in production from Baker Hughes.
In New York, October delivery crude futures descended 0.19%, hitting $47.29 per barrel. Meanwhile, in London, October delivery Brent crude futures sagged 0.18%, trading at $49.58 per barrel.
The previous week, Baker Hughes informed that the overall number of rigs drilling for crude in America last week soared by 10 to 406, which is the eighth consecutive weekly gain and the 11th ascend in 12 weeks.
Overnight, crude oil traded lower for the second straight trading session on Thursday because financial markets were still fixated on the global oversupply amid fading hopes that key oil producers will reach a deal to suspend output.
Futures are down almost 4% so far this week because financial experts and market participants remain skeptical that the meeting would bring a coherent effort to diminish the global glut.
EconomyVN - At the close on New York Exchange, US light sweet crude oil for September delivery rose to $43.49.
World oil prices yesterday (11th of August) rose more than 4%, after Saudi Arabia's energy minister left open the possibility that this oil-producing country can implement moves to rebalance globally the "black gold" market.
At the close on New York Exchange, US light sweet crude for September delivery rose to $43.49. On London Exchange, Brent oil rose to $ 46.04.
Earlier, Energy Minister Khalid al-Falih of Saudi Arabia stated that during the meeting of the Organization of Petroleum Exporting Countries (OPEC) expected to take place in September, the country can negotiate "any appropriate actions".
The experts supposed that most likely the future move of Saudi Arabia can completely reverse the current data on crude oil output.
On Monday, crude-oil prices kicked off August in rather a choppy trade because ongoing glut in refined and crude oil keeps exerting pressure on crude prices.
In New York, September delivery light and sweet crude futures traded at $41.75 a barrel, showing a $0.14 rise. Meanwhile, the October contract of Brent crude gained up to $0.18, being worth $43.71 per barrel after the initial dip at the start of the trading session.
The market appears to be more volatile also erratic ahead of the expiry of a contract because market participants are on the verge of rebalancing their books by simply covering their long or short trading positions.
However, supply and demand trends in the crude market are still lopsided, while prices are most likely to move sideway in the nearer future especially considering the absence of strong push or pull factors.
Over the weekend, American crude prices clawed back some ground after the major American currency got sold heavily.
Asian shares hit one-year high
Asian stocks managed to hit a one-year peak, following gloom American economic growth data, which ruined hopes that the Fed would lift interest rates in the nearer months.
American GDP surged at a 1.2% annual rate during the April-June period, which is less than a half of a 2.6% growth rate economists had expected.
Market participants have been shifting their money to Asia, that’s likely to be least influsenced by Brexit, while the Fed appears to be in no hurry to increase its interest rates.
MSCI's broadest index of Asia-Pacific stocks outside Japan soared 1.3%, getting to the highest level for about a year.
European shares are supposed to head north, with spread betters looking at surge of 0.7% in Germany's DAX as well as 0.4% in the UK’s FTSE.
Asian markets demonstrated quite limited reaction to a better-than-expected private poll on China's factory sector.
Meanwhile, the Caixin/Markit Manufacturing Purchasing Managers' index or PMI ascended to a 1 1/2-year peak of 50.6, thus beating market expectations for 48.7.
NYMEX and Brent dip slightly in Asia
On Wednesday, oil prices eased during Asia trade as industry data on American stockpiles appeared to be bearish.
According to estimates from the American Petroleum Institute, there was a sink of about 800,000 barrels the previous week, short of an expected descent of more than 2 million barrels, while the figures unveiled supplies at the oil-storage hub at Cushing, Okla surged by approximately 1.4 million barrels.
Additionally, Wednesday's government report could disclose that oil stockpiles sagged by about 2.3 million barrels for the week, with the 10th consecutive weekly sag in inventory levels nationwide. However, the current stockpile still remains above the five-year average by about 100 million barrels in spite of the recent drawdown.
In New York, September delivery WTI crude futures dipped 0.09%, hitting $42.88. Additionally, Brent crude sagged 0.15%, trading at $45.16 a barrel.
Overnight, American crude futures edged down to new 3-month minimums.
Gold prices edge down in Asia
Gold prices slumped during Asia trade with market participants glued for the latest policy review by the major American bank to be announced later today.
In New York, December delivery gold futures sank 0.24%, hitting $1,325.15 per troy ounce.
September delivery silver futures dipped 0.22%, trading at $19.640 per troy ounce, while September delivery copper futures surged 0.45%, trading at $2.233 per pound.
Overnight, the number one precious metal soared, remaining close to one-month minimums, as policymakers from the Federal Reserve obtained a final opportunity to digest a mixed pack of economic data ahead of a closely-watched interest rate verdict in the middle of the week.
The Federal Open Market Committee also dubbed FOMC is supposed to leave its benchmark interest rate at a targeted range 0.25%-0.50% for their fifth straight gathering. On Tuesday, the CME Group's Fed Watch tool placed the likelihood of a July rate lift at about 2.4%.
Aussie descends following mixed CPI data
The Australian dollar sagged during Asia trade after consumer price data kicked in a tad weaker than expected.
The currency pair AUD/USD was worth 0.7497, showing a 0.08% slump, while USD/JPY traded at 105.18, with a 0.52% rise.
In Australia, CPI data for the second quarter demonstrated a 0.4% soar quarter-on-quarter as expected. Meanwhile, the year-on-year figure was 1%, just a bit below the 1.1% pace observed.
As for year-on-year inflation - the most crucial number for the market as well as the Reserve Bank, it was somewhat higher than expected, hitting 1.5%.
Accordingly, the overall outcome is quite mixed, though still keeps alive the probability of a rate drop at the RBA's August board gathering. A lot will depend on how the RBA considers inflation pressures going ahead and that extent still-soft housing-related inflation. Obviously, soft non-tradable inflation might push Australia’s major financial institution over the line for a cut.
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.
In the Thursday session, oil prices recovered strongly as the dollar discount and less pessimistic psychology of investors on the market, according to the Wall Street Journal reported.
On New York market, the price of light sweet crude oil August delivery rose 93 cents to or 2.1% to 45.68 dollars per barrel.
On London market, the price of Brent oil rose 1.11 USD or 2.4% to the level of 47.37 per barrel. In previous session, oil prices declined sharply down, the lowest level in two months.
Since the British electorates voted to leave the European Union (EU) in late June 2016, oil price fluctuations follow the happenings of US dollar. Brexit makes investors worried about the global economic outlook, so the impact of supply and demand factors for oil is less than before.
Investors on the energy market and the stock market always try to assess whether investors are "fleeing" to the safe property.
In the yesterday session, USD index decreased 0.3%. Thus, prices of commodities increase. S&P GSCI tracking the movements of 24 types of goods increased 0.7%.
The psychology of investors on the energy market in the recent weeks is not optimistic by residual energy supply continues to increase, according to the Chairman of Ritterbusch & Associates Foundation, Mr. Jim Ritterbusch.
At the same time, there are also signs that demand for energy consumption rises more slowly, G7 reserves increased. Data from China showed the oil reserve in June 2016 of the country dropped down to the lowest level in five months.
However, still more positive factors support oil prices, according to experts in the Royal Bank of Canada (RBC).They forecast the global economy will grow 3.2% from now to 2018, energy consumption will remain high, predict that energy consumption of Canada increased 1.4 million barrels of oil per day from the level of 1.1 million barrels of oil per day as calculated previously.
RBC raise oil price forecasts on the US market up $45 per barrel this year from $41/barrel as calculated previously. Brent oil prices, also predicts this year's average is $47 per barrel, up more than $4 per barrel compared with previously updated research reports.
RBC said that world oil markets will establishe equilibrium in the second half of the year 2016 when the interrupt source elements as forest fires in Canada and riots in Nigeria are resolved. Oil demand will increase over time, excess reserves will be addressed.
In Asian trade on Tuesday, crude oil prices compare their losses, while keeping a minimum of two months due to increasing US crude oil drilling operations as well as supply growth elsewhere, firmly defend the view that the rebalance of the crude oil market will take longer than expected.
In New York, August delivery sweet, light crude oil futures lost $0.09, trading at $44.72. September delivery Brent crude costs at $46.25 per a barrel.
In spite of small revenues, both fell more than 3% from the previous week.
Crude oil prices will continue to go down as market participants still concerned the increase of exploration activities in USA will impact crude production.
On Friday, news from industry group Baker Hughes has demonstrated that the number of rigs drilling for oil in the US rose again by 10 to a total of about 351. Factly, the number of rigs is considered as a real sign of future crude output.