Asian Current Oil Prices Increase with Anticipation for US Retail Figures

The increase in current oil prices in Asia slightly compensates for losses caused by the reduction of the IEA of its crude demand projection as investors wait for the latest retail sales figures from the U.S.

In the NYMEX electronic trading, the crude price per barrel for delivery in September was 43 cents higher at $93.30 in the early PM – Bangkok time. The contract lost 49 cents ending the past week at $92.87 per barrel.

In London’s ICE Futures Exchange, the crude price per barrel of Brent was 70 cents higher at $113.65 a barrel.

Mr. Mark Pervan of ANZ Bank said that attention for the current week will be partly centered on retail sales of the United States for the month of July as a determinant for an increase or decrease in crude demand.

The retail numbers should provide a fairly good sign of primary demand. Further, strong retail data will increase the current oil prices. Other economic data from the U.S. for the present week consists of the country’s industrial production numbers for July.

In the past week, the IEA reduced its global crude demand projection for this year from 89.9 million barrels daily to 89.6 million barrels daily. That consists of a reduction of 200,000 barrels daily for China. Moreover, the agency decreased its previous oil demand forecast for the coming year, from 90.9 million to 90.5 million.

The downward change was caused by a combination of continuously high prices and weak economic conditions, said the IEA.

Elsewhere in the energy markets, the price of heating oil had a 1.5-cent gain at $3.035 a gallon. The cost of natural gas lost 2.3 cents at $2.747 for every thousand cubic feet. Gasoline price was 2.4 cents higher at $3.03 a gallon.

By: Chris Termeer