|News||Crude trades below $76 amid weaker economic figures from biggest three economies|
|Analysis||Crude is trading below $76 per barrel today as expectations regarding lower demand on oil in the second half amidst weakened economic figures from the top three economies in the world.|
Crude today traded below $76 per barrel recording its highest around $75.92 and lowest around $75.15, while currently trading around $75.52 per barrel.
Crude declined throughout the past four days from its highest levels recorded the prior week around $81 per barrel, affected by growing fears regarding the global recovery from the weak economic data from major economies; therefore, supporting expectations regarding a drop in demand level on crude throughout the second half of this year.
Crude last Friday traded above $76 per barrel recording its highest around $76.72 and lowest around $75.00 per barrel, closing around $75.52 per barrel. It managed to lose $0.35, where investors’ fears are increasing regarding the global economy witnessing slower than expected recovery in the second half.
The second largest energy consumer, US, is currently providing signs of a sluggish economic recovery pace in the upcoming period, where the Feds stated last week that the US economy is still fragile; thereby pushing the Feds to reactivate the purchasing of governmental bonds.
Meanwhile, the biggest largest global energy consumer, China, has also shown a slowing pace in recovery; spearheaded by the industrial sector’s worst than expected slowdown in the past few months. Japan also joined the abysmal race today to report slowing expansion in the second quarter as the economy grew at the slowest pace in three years which added further bearish pressures on the market amid projections for waning global recovery and weaker consumption and demand on crude.
As for NYMEX as of 04:42 EST; motor gasoline inclined to $194.520 per gallon to record $0.29; heating is trading around $200.610 per gallon gaining $0.53; whereas natural gasoline fell by $0.16 per 1000 cubic feet to record $4.321. In London, Brent futures climbed $0.32 to record $75.350.