|Previous||-3.7 million barrels|
|Forecast||-2.0 million barrel|
|Analysis||Crude oil prices remained pressured today during the Asian session after a report that showed that the US crude inventories rose last week which suggests that demand may be weakening and that will be confirmed today after the EIA report which will be released later today. Also the negotiations between the US leaders to raise the government’s debt ceiling before the deadline is affecting oil prices as the U.S. is the world’s largest oil consumer.|
Light sweet crude oil for September opened at $99.15 a barrel recording the intraday high at $99.48 a barrel and a low of $99.00 a barrel and is currently trading around $99.08 a barrel.
The dollar is trading within a narrow range after it fell to a three month low against a basket of major currencies; as a default in the U.S. will trigger more uncertainty over growth and the economy.
The USDIX opened today at 73.52 recording the highest at 73.58 and the lowest at 73.41 and is currently trading around 73.50.
lawmakers have only one week left to raise the debt ceiling before the deadline, and the congress is facing more uncertainty as Republican leaders delay action on a plan to raise the ceiling, narrowing the opportunities for a deal to avoid default.
The plan, which would cut $3 trillion in government spending, was faced with new obstacles and more questions about its impact. The latest development cast new doubt on whether lawmakers and Obama could agree on a plan to raise the nation’s debt limit before an Aug. 2 deadline when the U.S. could default on some of its obligations.
Eric Cantor, the House Majority Leader and a Virginia Republican, said the plan would be voted on July 28, and President Barak Obama’s Office of Management and Budget said it “strongly opposes” the measure and would recommend a veto if it were passed by Congress.
The American petroleum institute said late Tuesday that crude oil inventories rose 4.0 million barrels last week while gasoline inventories dropped 600,000 barrels last week and distillates rose 2.9 million barrels.
Today the EIA report will release its weekly supply data which is expected to show a drop in U.S. crude inventories by 2.0 million barrels amid the uncertainty that dominates the markets.
Mixed sentiment and volatility will remain in the market, where a wave of pessimism is dominating investors, as all eyes are focused on the world's largest economy, which may loose the triple A credit rating in case lawmakers fail to find a way to prevent default!