Crude Oil Fundamental Analysis August 26, 2013 Forecast

Analysis and Recommendations:

Crude Oil eased again today to trade at 104.87 down by 17 points as the US dollar continued to climb weighing on dollar denominated commodities. The price of oil dropped slightly too under 105 dollars a barrel. Future contracts on Light crude dropped 17 cents to 104.86 dollars while Brent crude contracts rose 18 cents to 110.08 dollar. Investors were cheered by figures pointing to a pick-up in the global economy.

On Thursday a preliminary purchasing managers index (PMI) of manufacturing activity in the eurozone hit a 26-month high, while a reading in the United States also showed improvement. Earlier in the day HSBC said its PMI for China had also shown growth for the first time in four months. After a slew of bad data that plagued the (Chinese) economy over the last two months, the latest release came as a positive surprise as global emerging markets battle an ongoing threat of stimulus withdrawal in the US. Data this month showed the eurozone economy grew 0.3 percent in the April-June quarter compared with the previous three months, breaking a record 18-month recession. 

Dealers are also closely monitoring an oil supply problem in Libya, analysts said, after Libya’s National Oil Company (NOC) on Thursday announced a resumption of exports from the Brega terminal in the east. The move allows it to partially lift from Thursday a declaration of force majeure. But the Zueitina, Ras Lanuf, Al-Sedra terminals remain blockaded by striking security guards in a dispute over allegations of corruption in oil sales.

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.

Economic Data August 23, 2013 actual v. forecast 

 

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