Crude Oil Futures Nudge Up in Asian Trade

Crude slid into a bear market last month, joining a broader slide in raw materials amid expanding supplies and signs of slower growth in China. In fact, the prospect of new oil from Iran and increasing output from Iraq and Saudi Arabia has also helped push prices lower.

Greece will take another step away from full-on crisis mode on Monday by opening its stock market for the first time in five weeks, although immediate heavy losses are expected.

There are two catalysts on the market’s radar this week.

Estimates from 13 analysts surveyed showed U.S. oil inventories are projected to have fallen 1.5 million barrels, on average, in the week ended July 31. The distillates will grow markedly.

US stocks began the new month on the back foot.

“The chart is looking anything but constructive”, said Fawad Razaqzada, technical analyst in London for forex.com, who expects Brent to test its January low of $45.20.

Oil held gains before U.S. government data forecast to show crude stockpiles fell in the world’s biggest consumer. As oil demand in Europe decreased, the refinery utilization of US increased with expectations of higher exports from US. “Either way, it should be bearish for oil”. Russia’s economy is heavily dependent on oil.

Brent futures plunged to a six-month low of $49.36 on Monday. “You can never exclude a further correction, but I think we are in the last 5 dollars rather than the next 15 dollars”. While European leaders said the regional economy could weather the storm, Eurostat, the statistical office for the European Union, said Tuesday industrial producer prices for June were 0.1 percent below May levels and 2.2 percent lower year-on-year.

The two Syrians told Guchetl they are interested in Russian companies supplying crude and other oil products to Syria, and in cooperation with Chinese firms to increase oil exploration in Syrian fields that are safe from “rebel attacks”. The market remains oversupplied, and demand typically declines at the end of the busy summer-driving season.

“A prudent analysis would say the market turned on a hair, and it will turn on a hair again”.

U.S. production growth should slow as unconventional shale production is expected to be the quickest to respond to low oil prices compared with larger and more-complex global projects, which require more lead time, according to the report.

“A strong non-farm payrolls print this Friday should seal it”, he said, referring to the key U.S.jobs data. Even with less than half as many rigs in the field as last year, oil production has climbed as companies have focused on richer fields and more efficient drilling methods.