NYMEX Crude oil near even early, awaits raft of data

NYMEX US crude oil futures straddled narrowly near even early on Monday as traders weighed forecasts for a drawdown in crude stocks and a raft of economic data that could guide market sentiment for the day.

Early support for crude came from China, where the official purchasing managers index for August reached a 16-month high, according to surveys released on Tuesday. Crude futures dropped sharply on Monday as a dive in Chinese equities spurred worries over oil demand and economic
growth.

“Despite the sell-off, WTI’s trading range remains intact, and downside support will not be taken out until we break below the $68.25 mark basis October and $66 basis October Brent,” said Ed Meir, analyst at MF Global in New York.

“Similarly, products have some ways to go before they too take out their short-term upchannels,” Meir added. At 10 a.m. EDT (1400 GMT), the Institute of Supply Management will release its gauge of US manufacturing activity and is expected to have moved into positive territory
in August for the first time since just after the recession began.

At 4:30 p.m. EDT (2030 GMT), the American Petroleum Institute will issue its inventory data for the week to Aug 28. The US Energy Information Administration will release its own report on Wednesday at 10:30 a.m. EDT (1430 GMT).

US crude inventories likely fell 400,000 barrels last week, a preliminary Reuters poll of analysts showed ahead of weekly supply data. The poll showed that analysts think gasoline stocks declined and distillate supplies rose.

Tags:  light oil prices, NYMEX