Oil prices rose again yesterday, but they are currently traded with moderate changes. Today the US unemployment claims report will be published along with the monetary development of European Union.
Here’s a short analysis and outlook of the oil market for today, June 30th:
Oil prices – June 2011
On Wednesday, June 29th oil price (WTI) rose again by 2.02% to $92.89/b; during June WTI fell nearly 7.72% of its value.
Brent also inclined by 3.41% to $112.40/b; during June Brent declined by 4.08%.
US Petroleum stocks
According to the recent US Energy Information Administration weekly report on U.S. petroleum market, the U.S. oil stocks fell very moderately declined last week by 323 thousand barrels, or by 0.02%. For the week ending on June 24th oil stocks reached 1,791.6 million barrels. The report also showed a decrease in oil production, imports and an increase in refinery input (See here the recent petroleum report).
US pending home sales
Yesterday, the US home sales report showed an increase in the pending home sales during May 2011; this news is usually considered to have a positive effect on oil prices: according to a research done by Roache et. al (2008): a working paper published by IMF that examines the effects of such news on oil prices; the rise in the home sales index might have affected the major commodities prices including oil prices as they have inclined yesterday and they are currently traded up.
Oil price outlook:
Following yesterday’s vote in the Greek parliament, the excitement in the financial market has slowed down and the major commodities are demonstrating moderate changes; as we are entering the long weekend its likely the news cycle will slow down and so will the changes in oil prices.
For further reading: Oil prices Monthly outlook –June 2011