While US market are closed today for the Fourth of July holiday, oil was trading at $72.24 a barrel in Europe after losing 81 cents on Friday. Investors remain uncommitted following last week’s worse-than-expected employment news showing the US economy created fewer jobs in June than in March and April. This, together with a slowing Chinese economy, has some traders heading for the exists with their profits.
“Obviously, speculative investors are taking their profits because of worries regarding an economic slowdown in the USA and China,” said a report from Commerzbank in Frankfurt.
A report from ANZ bank confirms the opinion:
“The balance of crude oil price risks appears skewed towards the downside” because of “negative demand shocks from a sluggish economic recovery,” ANZ bank said in a report.
ANZ said it expects crude to trade between $65 a barrel and $75 this month.
Source: Associated Press
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by Scott Boyd (see all)
- Japan’s Demographic Trap - 25 June 2012
- Officials Talk Openly of Greek Euro Exit - 16 May 2012
- Greek Voters Prepare to Roll the Dice - 15 May 2012