Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil Futures Rangebound As Manufacturing Outlook Weighs

Published 09/02/2014, 06:09 AM
Updated 07/09/2023, 06:31 AM

Brent held below $103 a barrel on Tuesday amid fresh tensions in Libya, the world`s top oil producer, while new signs of a slowdown in both Europe and China also weighed on the sentiment. West Texas Intermediate was little changed.

Economic data released yesterday showed that manufacturing growth in the euro area in August was worse than expected, while the growth in the factory sector in China fell to its lowest level in three months, which raised concerns about demand for oil in the world`s second-largest consumer.

As of 03:23 am ET:

- WTI for delivery in October fell 0.28% to $95.69 a barrel on the New York Mercantile Exchange

- Brent for October delivery fell 0.23% to $102.55 a barrel on the ICE exchange in London

Oil futures fell for the second straight month amid ample supplies and buoyant dollar, but analysts expect an uptick in prices this month.

Supply gains in the Middle East and Africa continue to pressure prices but the decline in oil prices is expected to see some upside corrections. Analysts believe the European benchmark will not break the $100 level however any corrections will be very limited for the time being.

In Libya, the violence reignited between the government and rival armed groups, threatening oil production, although the OPEC member raised its crude exports to 700 thousand barrel per day from May`s low of 155 thousand barrel per day.

Geopolitical tensions continue to support oil prices, with the army of Kurdish Iraqi forces closing in on the fighters of the Islamic State on Saturday, in a bid to break the siege of the Sunni insurgency while the U.S. resumes airstrikes in Northern Iraq.

Russian President Vladimir Putin called for talks about the "statehood" in the south and east of Ukraine, while his Ukrainian counterpart Petro Poroshenko said his country is ready for a full-scale war with Russia.

On the other hand, Iranian President Hassan Rohani said on Saturday that the imposition of new sanctions on Tehran over its nuclear program is dangerous and could affect future negotiations with the U.S.

Later today, traders will be watching further manufacturing data from the U.S. the world`s top consumer. A greater acceleration in August, on top of a very solid July, would further lift the manufacturing outlook, but the consensus forecast is expecting a soft deceleration.

The Institute for Supply Management`s factory index for August will be due at 1400 GMT, probably slipping to 57.0 compared with July`s reading of 57.1.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.