August 24, 2010 Market Indicators

NEW YORK (DTN) — New York Mercantile Exchange oil futures tumbled as
Monday’s sell-off continued across various commodity and equity markets
during overnight trading. Investors were nervous about the global economic
recovery after recent data suggested U.S. growth was slowing.
  Oil traders were also worried about a persistent U.S. supply overhang,
with no major inventory drawdown expected before Labor Day, which usually
marks the end of the peak driving season. Analysts said the economic
slowdown could further erode demand for gasoline and winter fuels.
  Meantime, the U.S. dollar continued to rally against a basket of rival
foreign currencies, adding pressure on oil prices. The dollar index was up
0.3 percent this morning.
  The market is now waiting for U.S. data on existing home sales for July,
which are expected to be weaker than for June, and U.S. oil inventory data
for the week-ended Aug. 20, which are expected to show a small drawdown for
gasoline and small builds for heating oil and crude supply. The American
Petroleum Institute will issue its data at 4:30 PM ET today.
  At 8:00 AM ET on Tuesday, October NYMEX WTI crude futures were down
82cts at $72.28 after trading overnight to a fresh 6-1/2 week low on the
spot continuation chart at $72.02. October Brent futures were down 73cts at
$72.89 bbl on London’s ICE Futures.
  In products trade, September NYMEX No. 2 heating oil futures were down
1.40cts at $1.9414 gal, after trading to a fresh 6-1/2 week low on the spot
continuation chart at $1.9360. September NYMEX RBOB gasoline futures were
down 1.59cts at $1.8651 gal, after falling to a fresh 6-1/2 month low on
the spot continuation chart at $1.8608.
  On weather, the National Hurricane Center upgraded for Tropical Storm
Danielle that’s swirling over the Atlantic to a hurricane 2 status. The
hurricane’s track is headed for Bermuda however, posing no threat to oil
and gas facilities in the Gulf of Mexico.

This entry was posted on Tuesday, August 24th, 2010 at 8:57 am and is filed under Daily Market Indicators. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.