|Analysis||Crude oil futures traded higher during the Asian session Monday, affected by the release of China’s manufacturing data that dropped to 51.2 during July, compared with the previous 52.1, therefore, easing off concerns that China’s government acts of suppressing growth rates in the country might curve recovery.|
Crude oil September contracts opened today’s trading levels at $78.95 per barrel, while setting a high of $79.50 a barrel and a low of $78.83 a barrel. Crude Friday traded above $78 per barrel recording its highest around $79.02 and lowest around $76.81 per barrel, closing around $78.89 per barrel, meanwhile crude managed to gain by $0.48 from Friday’s closing levels as it ascended by 0.61 percent.
The Manufacturing sector in Europe is gaining momentum, thus raising speculation that demand on oil might increase more as recover persist in the region, meanwhile, growth in the US witnessed a slowdown during the second quarter of this year, where the advanced GDP reading showed an expansion of 2.4 percent, compared with the previous 2.7 percent, reported a quarter earlier.
Meanwhile, the release of Europe’s manufacturing data that presented a brighter outlook for the sector in the Euro-Zone, and UK, signals that improving conditions in the sector would help boost demand on oil.
Furthermore the Organization of the Petroleum Exporting Countries stated that the median price of its OPEC Basket; which includes 12 crudes, rose on July 30th to $74.43 a barrel, compared with $74.19 a barrel that was reported a day earlier.
The US dollars drop was due to data released from the region showing that the economy is moving at a weaker than expected pace, thus reflecting a drop in consumer confidence the lowest in the three months; The U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, traded unchanged on the daily scale, where the index is currently trading at the opening levels of 81.43. The index reached the highest so far at 81.55 and the lowest at 81.37.
For Today's Technical points for precious metals Click here.