Oil Traders Considering Global Data
Fx Empire | Jun 09, 2014 05:47AM ET
WTI crude oil seems to be hitting major resistance at the 103 level, trading this morning at 102.84 up by 17 cents supported by a strong US nonfarm payroll report released on Friday. The data shows that the US is well on its way to recovery now that the winter and Q1 is behind. Improving economic sentiment helps increase implied demand for the energy products. Brent Oil added 6 points as it recovers from a major fall over the last week. Just days ago the black gold was trading as high as 110 until it tumbled towards the end of the week to trade at 107.86 as the week closed at is holding at 107.92 this morning. The oil market didn’t move much last week as oil prices slightly declined during last week. WTI inched down by 0.05%; Brent oil declined by 0.73%. As a result, the gap of Brent oil over WTI slightly narrowed by the end of the week; the premium ranged between $5.95 and $6.36. Last week, the EIA’s update showed a sharp rise buildup in oil’s stockpiles of 8.8 million barrels.
US nonfarm payrolls rose by 216,000 in May, while government payrolls were effectively unchanged. Jobs in service industries expanded by 199,000, while payrolls for the goods sector rose by 18,000. Over the past year the service industry has accounted for over 85 per cent of jobs growth.
West Texas Intermediate crude traded near the highest price in three days amid signs that economic growth is being sustained in China and the U.S., the world’s two biggest oil consumers. Brent was steady in London. China’s exports expanded more-than-estimated 7 percent last month, while imports fell, data showed yesterday. U.S. nonfarm payrolls rose by 217,000 in May, exceeding the pre-recession peak.
Ukrainian President Petro Poroshenko said violence in the country’s east must end this week as peace talks with Russia began. Poroshenko, who took the oath of office on June 7, said negotiations with Russia should be held on a daily basis. He used his inauguration speech to present a plan to bring peace to the nation after more than six months of unrest that’s pitted the U.S. and Europe against Russia, the world’s largest energy exporter, in the worst standoff since the Cold War.
China’s exports increased by more than the median 6.7 percent gain forecast in a Bloomberg News survey of economists, helping to cushion a slowdown as an unexpected drop in imports highlighted risks to growth. “There are still concerns over China’s domestic demand,” Yun said. “Determining whether or not China is recovering is something we’ll need to wait and see.” The Asian nation will account for about 11 percent of global oil consumption this year, compared with 21 percent for the U.S., according to estimates from the International Energy Agency in Paris.
Get The News You Want
Later this week the Organization of Petroleum Exporting Countries will probably maintain its production ceiling at 30 million barrels a day at a meeting in Vienna on June 11. Ministers from Saudi Arabia, Angola and Kuwait said they expect no change, as did 22 of 23 analysts and traders in a separate Bloomberg survey. The 12-member group pumps about 40 percent of the world’s oil.
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.