Crude Oil Prices Buoyed by Declining Crude Inventories - US Market Open
MARKET DEVELOPMENT – Crude Oil Prices Buoyed by Declining Crude Inventories
Oil: Crude oil futures are notably firmer this morning with Brent crude up over 1% following yesterday’s API crude oil inventory data. The report showed a larger than expected crude drawdown of 6.02mln barrels over the last week (Exp. 2.6mln barrels). Alongside this, reports of supply disruptions at Libya’s El-Sharara oilfield has also underpinned the complex. Eyes will be on the DoE crude report for confirmation of the API data.
GBP / EUR: After 2-days of heavy selling for GBP, the currency is showing modest gains this morning, reclaiming the 1.22 handle amid a bout of profit taking ahead of the FOMC and BoE rate decisions. Elsewhere, EURUSD trades within a tight range as today’s mixed inflation and growth data unlikely to change the near-term outlook for the ECB with the central bank scheduled to announce a fresh stimulus package at the September meeting.
AUD / CAD: Across commodity currencies both the Aussie and Loonie are firmer vs the US Dollar with the latter benefitting from better than expected GDP figures, while the Q2 inflation report from Australia has largely done enough to keep the RBA from lowering interest rates at next weeks meeting.
Source: DailyFX, Thomson Reuters
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--- Written by Justin McQueen, Market Analyst
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