News Column

Crude Oil Extends Strong Rally Above USD105

July 22, 2014

WASHINGTON (Alliance News) - Crude oil prices are higher Tuesday morning, extending recent upmove, amid lingering worries about the ongoing conflicts in Ukraine and the Middle East.

There was little reaction to news that Libya's Brega oil port is set to reopen following an agreement with striking guards.

Traders are also looking ahead to the official crude oil inventory data from the US Energy Information Administration, due on Wednesday. Prior to that, the American Petroleum Institute will come out with its weekly oil report late evening today.

Crude futures for August are up USD0.54 or 0.52% at USD105.13 a barrel. August series contracts expire today.

Meanwhile, crude oil futures for September are up USD0.17 or 0.16% at USD103.13 a barrel.

On Monday, crude oil futures for August had ended at USD104.59 a barrel, gaining USD1.46 or 1.4%, as fighting in Gaza intensified and sanctions on Russia appeared likely.

Russia, a major supplier of crude oil, is under pressure from the US and Europe to foster peace between pro-Russian rebels and nationalists in Ukraine.

Natural gas for August is down USD0.005 or 0.14% at USD3.841 per million btu.

Traders are looking ahead to the US Labor Department's report on consumer price inflation report for June, due at 8:30 am ET. Economists expect consumer prices to have increased 0.3% month-over-month, while core consumer prices may have climbed 0.2%.

At 9 am ET, the Federal House Finance Agency is due to release its house price index for May, and at 10 am ET, the US Commerce Department will release its existing home sales report for June. Economists expect existing home sales to come in at a seasonally adjusted annual rate of 4.99 million units compared to 4.89 million units in May.

Also at 10 am ET, the Richmond Federal Reserve will release the results of its regional manufacturing survey. Economists expect the manufacturing index to rise to 5.5 in July from 3 in June.

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Source: Alliance News

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