Breaking News

Crude oil futures - weekly outlook: July 27 - 31

CommoditiesJul 26, 2015 03:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Oil futures suffer heavy losses as U.S. drilling increases

Investing.com - U.S. oil futures fell to the lowest level in almost four months on Friday, after data showed that rigs drilling for oil in the U.S. rose last week, underlining concerns over robust domestic production.

On the New York Mercantile Exchange, crude oil for delivery in September hit an intraday low of $47.72 a barrel, a level not seen since April 1, before ending at $48.14, down 31 cents, or 0.64%.

On the week, New York-traded oil futures tumbled $2.97, or 5.99%, the sixth consecutive weekly loss, as worries over high domestic U.S. oil production weighed.

Nymex oil prices fell to the lowest levels of the session after industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. increased by 21 last week to 659, the most since May.

Elsewhere, on the ICE Futures Exchange in London, Brent for September delivery declined 65 cents, or 1.18%, to close at $54.62 a barrel after hitting a session low of $54.30, the weakest level since April 2.

For the week, London-traded Brent futures lost $2.50, or 4.34%, the fourth straight weekly decline, amid concerns a resumption of Iranian oil exports will add to a global glut.

Iran and six world powers reached a long-awaited nuclear deal earlier in the month that would end sanctions on Tehran in exchange for curbs on the country's disputed nuclear program. Iran reportedly hoards 30 million barrels of oil in its reserves ready for export.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $6.48 a barrel by close of trade on Friday, compared to $5.89 in the preceding week.

Concerns over the health of China's economy also weighed. The preliminary reading of the Caixin/Markit manufacturing purchasing managers’ index fell to a 15-month low of 48.2 this month from a final reading of 49.4 in June.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

In the week ahead, market players will focus on the outcome of the Federal Reserve's highly-anticipated policy meeting on Wednesday as well as the release of preliminary second quarter growth data on Thursday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, settled at 97.34 late Friday, paring the week’s losses to 0.65%.

The dollar has been boosted by expectations that the U.S. central bank could raise rates as soon as September if the economy continues to improve as expected.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, July 27

In the euro zone, the Ifo Institute is to report on German business climate.

The U.S. is to release data on durable goods orders.

Tuesday, July 28

The U.K. is to release preliminary data on second quarter economic growth.

The U.S. is to release a report on consumer confidence, while the American Petroleum Institute, an industry group, is to publish its weekly report on oil supplies.

Wednesday, July 29

The U.S. is to report on pending home sales and on crude oil inventories.

Later in the day, the Federal Reserve is to announce its latest monetary policy decision and publish its rate statement.

Thursday, July 30

In the euro zone, Germany and Spain are to release preliminary data on consumer inflation. Spain is also to release preliminary data on second quarter growth and Germany is to release data on the change in the number of people employed.

The U.S. is to produce preliminary data on second quarter growth and the weekly report on initial jobless claims.

Friday, July 31

The U.S. is to round up the week with revised data on consumer sentiment and a report on business activity in the Chicago region.

Crude oil futures - weekly outlook: July 27 - 31

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email