Oil prices below $80 as demand sluggish
Oil prices are hovering just below $80 per barrel, at around $79 for September crude delivery in Tuesday’s (July 27) early New York Mercantile Exchange trade. Still moving in sync with equities in the big picture, the price of oil is limited by continued reports of sluggish crude demand levels in the US.
How long oil speculation lines up with equity direction remains to be seen. If reports on US crude inventory levels continue to show less demand than expected by analysts, it is quite possible stocks could carry higher and leave oil prices at or below current levels in the market.
Late Tuesday the American Petroleum Institute will share its report on last week’s crude inventories, with the Energy Information Administration set to follow with its weekly update on Wednesday.
For several weeks, actual inventory level reports have either showed higher levels of crude supplies, or levels have dropped by less than analysts had predicted. This can be attributed to ongoing budgeting on travel amongst consumers and tight cost controls by businesses.
The popular word during the recession “staycationâ€, has entered the marketing fray again as families are trying to find cheap ways to vacation. Rather than planning expensive trips and travels, more Americans are finding rest and relaxation closer to home.
The good news for consumers that are driving, oil prices have been fairly stable for much of the normally busy summer driving season. Prices at many pumps around the country are near or below the levels they were in the late spring and early weeks of summer.
Many top analysts continue to suggest that fundamental conditions support lower oil prices going forward. However, if the dollar remains weak and inventory levels show surprising drops, oil prices could certainly creep higher into the $85-90 range.
About Pete Southern
Pete Southern is an active trader, chartist and writer for market blogs. He is currently technical analysis contributor and admin at this here blog.
Most Popular Content
- Gold Flying and Making New All Time Highs
- Gold Prices Slip Ahead of Anticipated Economic Data
- Oil Prices Surge From Lows Amid Mixed Global Signals
- U.S. Stock Indices: A Dance Between Optimism and Fear
- Gold Prices Dance with CPI Data and the Fed
- Oil Prices Surge Amid Record Demand and Supply Tightening
- Gold Steady As US Dollar Index Tries to Make Gains
- Some Respite for Crude Oil within Bear Trend
Currency Articles - May 22, 2019 15:21 - 0 Comments
The Pound is in Freefall – When Will It Stop?
More In Currency Articles
- GBP Gets Ready for an Unpredictable Day with Meaningful Vote 2
- British Pound Stays Strong Whilst The Dollar Remains Weak
Gold and Oil News - Mar 30, 2024 10:37 - 0 Comments
Gold Flying and Making New All Time Highs
More In Gold and Oil News
- Gold Prices Slip Ahead of Anticipated Economic Data
- Oil Prices Surge From Lows Amid Mixed Global Signals