July crude oil prices trended lower throughout the overnight and early morning trading hours, falling to their lowest level since November 1st. Some traders indicated that weakness in the market came from mounting fears regarding the European debt situation and economic growth concerns. Outside markets were under pressure from a risk-averse tone, with global equity markets lower and the Euro currency at a new 21-month low against the US dollar. Further weakness in the crude oil market might have come from headlines suggesting that the IAEA was close to a deal between Iran and Western nations to investigate Iran's nuclear program. This comes as world leaders meet in Baghdad today to discuss recent sanctions against Iran. The progress is seen as a positive in resolving conflict and reduces the threat of supply disruptions in the oil market. Expectations for this morning's EIA inventory report are for crude stocks to show their ninth consecutive build, this time in the range of 1.5 million barrels. This compares to the five year average draw for this week of the year of 900,000 barrels.
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