Oil Daily Outlook July 25

Oil prices finished the week with moderate rises but they are currently traded moderately down. Today, the Governor of the Reserve Bank of Australia will give a speech.

Here’s a short analysis and outlook of the oil market for today, July 25th:

Oil prices – July 2011

On Friday, July 22nd oil price (WTI) rose by 0.78% to $99.64/b; during July WTI inclined by 4.55%.  

Brent also rose 0.54% to $118.29/b; during July Brent rose by 5.89%.

The premium of Brent over WTI kept on falling in recent days as Brent crawled down while WTI inclined; on Friday July 22nd the premium reached $18.65/b – its lowest level since July 6th; that being said, during July this premium rose by 13.65%, mainly because Brent outperformed WTI during the first week of July.


US dollar / oil prices – July update

 On Friday, Euro/USD exchange rate declined by 0.45%; furthermore, the AUD/USD rose by 0.09% and USD/CAD moderately inclined by 0.50%. This direction might shift as the concerns over the US debt ceiling continue to build up (see here for further elaboration on the debt ceiling talks).

 Oil price outlook:

Oil prices continue to moderately change with no clear direction for oil prices and in the short term, they are likely to remain near $97-$100 for WTI and $117-$118 for Brent.  

 Here is a reminder of the top events and reports that are planed for today and tomorrow (all times GMT):


4.05 – Reserve Bank of Australia – Governor Stevens talks


15.00 – US consumer confidence

15:00 – U.S. new home sales

 For further reading: Weekly outlook for July 25-29  

Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.  


NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.