NewsCrude drops for the third day due to negative economic dataPreviousForecastAnalysisCrude declined this morning trading below $77 on the prevailing negative sentiment following downbeat fundamentals from the US economy. Yet support was still evident after crude regained some of its losses yesterday and heading to a weekly gain on improved equity sentiment on good earnings; whereas OPEC expects a rise in demand supporting crude futures to slightly gain by next year.
Crude today traded below $76.80 per barrel recording its highest around $77.10 and lowest around $75.35, while it currently is trading around $76.45 per barrel.
The rise witnessed in trades was due to support from expectation by OPEC, where it raised demand estimates for developing countries like China and India; rising in 2011 by 1.2% 1.05 MB recording an average of 86.41 MB; demand on crude is also expected to grow this year to 1.1% by 950.000 barrels per day.
Crude yesterday traded around $76.75 per barrel recording its highest around $77.65 and lowest around $75.32 per barrel, closing around $76.85 per barrel. It managed to record a drop of $0.42 by 0.6% due to weaker US data, with a wave of pessimistic sentiment enveloping the market.
Moreover, the decline in the US industrial sector performance played a role in crude’s drop, where the empire manufacturing index slipped from 19.6 the previous month to 5.1 in July. Meanwhile, equities gained as the second largest US bank by assets, JPMorgan Chase & Co., recorded higher than expected profits by 76% throughout the last quarter.
As for NYMEX as of 02:41 EST; motor gasoline fell to $205.650 per gallon by $0.420; heating is trading around $201.620 per gallon dropping by $0.210; whereas natural gasoline fell $0.006 per 1000 cubic feet by $4.580. In London, Brent futures plummeted by $0.220 to record $75.870.