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WTI oil price heading towards $74, US data a concern
Published on July 13, 2010 by oilprices · No CommentsWTI oil prices open trading on Tuesday and quickly head lower towards the $74 mark as US economic data being relased later this week has investors conerned that commodities and oil prices will fall.
US Light crude oil futures for August 2010 delivery was trading down at $74.40 07.00 GMT on the NYMEX.
“Oil prices have been quite correlated with economic data. If US retail sales fell worse than expected, yes” crude prices would fall, said Serene Lim, oil and gas analyst with ANZ bank in Singapore.
Meanwhile, US crude stockpiles probably fell by 2 million barrels in the week to July 9th 2010, a recent Reuters survey showed, after falling 5 million barrels a week earlier because of shutdowns and shipping disruptions related to Hurricane Alex.
“We shall expect more hurricanes this season, so at this point we should pay more attention to the level of stockpiles.” said Keichi Sano, general manager of research at SCM Securities in Tokyo.
The industry group American Petroleum Institute will release its weekly inventory report later today followed by government statistics from the Energy Information Administration tomorrow.
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