Oil.......
Crude oil futures slipped below $105 a barrel in the Asia electronic session today pressured by strength in the US dollar. The energy commodity is also undermined by growing concerns over the outlook for energy demand in China, ahead of manufacturing data from China and a statement on monetary policy from the U.S. Federal Reserve due this week.
Crude oil futures slipped below $105 a barrel in the Asia electronic session today pressured by strength in the US dollar. The energy commodity is also undermined by growing concerns over the outlook for energy demand in China, ahead of manufacturing data from China and a statement on monetary policy from the U.S. Federal Reserve due this week.
Crude oil for September delivery is trading down 24 cents at $104.31 per barrel on the New York Mercantile Exchange. Yesterday, it fell 15 cents, or 0.1%, to settle at $104.55 a barrel. On Friday, the contract fell 79 cents to $104.70 a barrel.
The ICE dollar index, a gauge of the greenback’s movement against six other major currencies, rose to 81.711, up from 81.663 late Monday in North America. The euro bought $1.3260, little changed from $1.3263, while the British pound fell to $1.5339 from $1.5349.
On the data front today, Japan's industrial production took an unexpectedly sharp drop in June, falling a seasonally adjusted 3.3% from May, though manufacturers offered an upbeat outlook for the current month, the Ministry of Economy, Trade and Industry reported Tuesday.
Meanwhile, Japanese consumer spending made a surprise downturn in June, though the unemployment rate eased in the same month, the Finance Ministry reported Tuesday. Spending by households of two or more people fell 0.4% on a price-adjusted basis compared to a year earlier. On a brighter note, the unemployment rate eased to 3.9% in June -- an almost five-year low.
MCX August crude oil futures may open today’s session near Rs 6240 per barrel with support around Rs 6190 levels.
Energy investors have a busy week of economic updates to consider, including the first look at second-quarter growth in the U.S. and more manufacturing data from China for July. Last week, oil prices suffered their first weekly loss in five weeks after HSBC data showed manufacturing activity in China fell to an 11-month low in July.
A statement on monetary policy is due from the Fed on Wednesday, followed by statements Thursday from the European Central Bank and the Bank of England. The markets will watch for any language from the Fed that hints at the timing of when it will start tapering monetary stimulus. The central bank’s bond-buying program, part of a strategy to encourage economic growth, currently runs at $85 billion a month.
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