News Column

Crude Oil Steady Above USD105 Ahead Of Inventories

July 1, 2014

WASHINGTON (Alliance News) - Crude oil prices are higher Tuesday morning, with a strong reading on Chinese manufacturing boosting the outlook for energy demand.

Traders are looking ahead to the official crude inventory data from the US Energy Information Administration tomorrow.

Developments in Iraq are also being closely watched. According to reports the Iraqi law makers failed to reach an agreement on electing a new speaker. The parliament has reportedly been adjourned for a week.

Crude oil futures for August are up USD0.32 or 0.3% at USD105.69 a barrel.

On Monday, crude oil futures ended down USD0.37 or 0.3% at USD105.37 a barrel, extending losses to a third straight session, amid easing concerns over disruption in supplies from the Middle East

Iraqi government forces began to make headway into territories held by Sunni rebels over the weekend.

For the month, crude oil futures added 2.6% and recorded a gain of 3.7% for the quarter.

Meanwhile, natural gas for August is down USD0.043 or 0.96% at USD4.418 per million btu.

Markit will release its final manufacturing activity reading for the US at 9:45 am ET. Economists expect the index to be downwardly revised to 57 in June from the flash estimate of 57.5, although higher than the May reading of 56.4.

At 10 am ET, the Institute for Supply Management's national manufacturing survey results will be out. Economists expect the index to be edge up to 55.6 in June from 55.4 in May.

Also at 10 am ET, the Commerce Department will release its construction spending report for May. The consensus estimate calls for a 0.5% month-over-month increase in the construction spending for May.

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Source: Alliance News

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