Wednesday, August 3, 2016

Crude Oil Inventories surprised the markets with a surplus of 1.4 million last week

US crude is trading just below the $40 level on Wednesday. In the North American session, WTI/USD futures are trading at $39.97 Brent crude is trading at $42.54, as the Brent premium has widened t0 $2.57. On the release front, Crude Oil Inventories gained 1.4 million, surprising the markets which had expected a decline. ADP Nonfarm Payrolls improved to 179 thousand, beating the estimate. The ISM Non-Manufacturing PMI came in at 55.5 points, short of expectations. On Thursday, the US releases Unemployment Claims and the RBA will publish a monetary policy statement.
Crude Oil Inventories surprised the markets with a surplus of 1.4 million last week. The estimate stood at -1.6 million. The gain underscores the oversupply of crude on world markets, which has weighed on oil prices. US crude has broken below the symbolic $40 level, and with producer countries showing little appetite to curb output, the downturn in prices could continue.