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.