Oil Rises Slightly Ahead of Inventory Data

Oil prices rose on Thursday ahead of weekly U.S. stocks data, despite fresh signs of an economic slowdown in China and Japan.

Crude prices have fallen more than 3 percent this week on persistent worries over global demand and a supply glut.

Benchmark crude futures nevertheless posted modest gains ahead of the U.S. Department of Energy (DoE) oil stocks report at 1500 GMT, which is expected to show a rise, according to a Reuters survey.

Brent crude futures LCOc1 rose 15 cents to $47.73 per barrel by 1340 GMT. U.S. crude futures CLc1 were up 30 cents at $44.45 a barrel.

“A lot of this rally will be profit-taking ahead of the DoE numbers,” said Hamza Khan, commodities analyst at Netherlands-based ING Financial Markets.

“The stage is set for a recovery but as long as we keep getting disappointing numbers out of China it will weigh and delay a recovery,” Khan said.

Japan’s core machinery orders fell 3.6 percent in July, data showed on Thursday, much worse than a 3.7 percent increase expected by economists.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza