July crude oil prices rebounded from overnight losses during the initial morning hours. The latest read on Chinese PMI showed further contraction and a separate reading on German business conditions registered its first monthly decline in seven months. Despite the weak economic readings, some traders indicated that there was a slight improvement in sentiment, with an early morning rally in global equity markets and a rebound in the Euro currency from a new 22 month low. Another supportive force for crude oil prices might have come from a potential sticking point between Iran and world leaders over Iran's nuclear program. Yesterday's EIA inventory report showed crude stocks rose by a little less than expected of 883,000 barrels. This marked the ninth consecutive weekly build and crude stocks at 382.527 million barrels are the highest for this week since 1990. Supplies held in Cushing Oklahoma rose by 1.7 million barrels to a new record of 46.8 million barrels. The refinery operating rate was down 0.2% to 88.1%, which compares to 86.3% last year and the five year average of 87.65%.
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