|News||Crude drops below $81 as investors await FOMC decision|
|Analysis||Crude fell below $81 per barrel as investors await the Federal Reserve FOMC decision later on today, where markets are anticipating the Feds to take new steps to help US economic growth. Meanwhile, the Chinese government has released data showing a drop in imports in crude, alongside the US dollar rising against a basket of major currencies and thereby negatively affecting crude.|
Crude today traded below $81 per barrel recording its highest around $81.57 and lowest around $80.30, while it currently is trading around $80.40 per barrel.
The biggest energy consumer in the world, China, released data today showing crude imports fell by 15% in July to 19 Million tons of crude oil, compared to the previous month that had peaked at 22.3 Million tons. This negatively reflected on trading and has spurred renewed fears regarding demand levels on crude.
Crude yesterday traded above $82 per barrel recording its highest around $81.92 and lowest around $80.70 per barrel, closing around $81.42 per barrel. It managed to lose $0.78 or 0.97%, as pessimistic sentiment spreads throughout the market due to the lower Chinese imports and the US dollar’s appreciation amid market jitters ahead of the FOMC decision.
On the other hand, investors are focused on the Federal Reserve meeting today as they await the possible policy changes that may occur; where there are mixed expectations circling regarding whether the Feds will offer new stimulus measures to support the second largest energy consumer in the world, which is presently witnessing a sluggish recovery.
The API report is expected to release consumption levels data for 2010 today, where it expects levels to reach 85.82 MB per day from 85.51 MB per day.
As for NYMEX as of 04:15 EST; motor gasoline declined to $209.870 per gallon to record $0.94; heating is trading around $213.330 per gallon losing $0.95; whereas natural gasoline fell by $0.28 per 1000 cubic feet to record $4.297. In London, Brent futures dropped $1.32 to record $79.920.