NYMEX crude up in early Asia as investors look to API survey on stocks
Investing.com – Crude oil prices staged a rebound in early Asia on Tuesday ahead of industry data on U.S. stockpiles.
Later Tuesday, the American Petroleum Institute will report on stocks of crude and refined products by the end of last week with more-closely watched data on the same figures due Wednesday from the U.S. Department of Energy.
On the New York Mercantile Exchange, WTI crude for September delivery rose 0.31% to $45.44 a barrel, rebounding from a sharp fall on Monday.
Overnight, WTI crude futures plunged to a six-month low on Monday, amid weak economic data in the U.S. and China, as well as indications of softening automobile demand.
WTI crude future are now approaching their 2015-yearly low of around $43 a barrel. U.S. shale producers can ill-afford to drill at lower prices calling into question whether production cuts will be necessary. Last week, production remained nearly 9.5 million barrels per day – near the highest amounts in more than 40 years. Overseas, the losses in crude futures were just as dramatic.
On the Intercontinental Exchange (ICE), for September delivery dipped below $50 a barrel touching down to its lowest level since late-January. Brent crude futures traded in a broad range between $49.49 and $52.01 a barrel before also closing near the session lows at $49.53, down 2.68 or 5.13%. Meanwhile, the spread between the international and U.S. benchmarks of crude stood at $4.30, below Friday’s level of $5.11 at the close of trading.
On Monday morning, the U.S. Department of Commerce’s Bureau of Economic Analysis said consumer spending increased by 0.2% in June in line with analysts expectations, while personal income rose by 0.4% — slightly higher than consensus estimates. Analysts forecast a 0.3% rise in incomes for the month. In overnight trading in Asia, China reported that its Caixin Manufacturing PMI for July fell sharply to 47.8, down from 49.4 a month earlier. Manufacturing activity in China unexpectedly stalled last month, amid weakening demand both domestically and abroad.
Energy traders also digested the latest build by OPEC last week in a global market already saturated by oversupply. For the month of July, OPEC supply surged to 32.01 million barrels per day, according to a Reuters survey, rising slightly from an upwardly revised total of 31.87 million bpd in June. Since roiling global energy markets in November with a strategic decision to boost its market share by leaving its production ceiling above 30 million bpd, OPEC supply has increased by more than 1.6 million bpd.
In June, Saudi Arabia produced more than 10.6 million barrels a day, amounting to its highest level on record. The survey is based on shipping data and other energy statistics compiled by industry sources.
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