Oil Retreats Awaiting Fed and US Economic Data

West Texas Intermediate and Brent crudes fell before U.S. economic data that may signal slowing growth, curbing fuel use in the biggest oil-consuming nation.

Crude in New York slipped for the fourth time in five days amid forecasts that an index of U.S. service industries dropped this month. An upsurge in fighting in Libya hasn’t spread to oil-export terminals and the conflict in Iraq spared the country’s main oil-producing region. WTI slid last week after government data showed that gasoline stockpiles rose to a four-month high as demand declined.

“The fundamentals are putting a little pressure on the market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We have ample supplies and limited demand. The problems in Iraq and Libya don’t appear to have had any major impact on supply.”

WTI for September delivery dropped 79 cents, or 0.8 percent, to $101.30 at 9:10 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 18 percent below the 100-day average for the time of day.

Brent for September settlement dropped 89 cents, or 0.8 percent, to $107.50 a barrel on the London-based ICE Futures Europe exchange. Volume was 55 percent lower than the 100-day average. The European benchmark crude traded at a $6.20 premium to WTI, down from $6.30 on July 25.

via Bloomberg

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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