Range Trading, Crude Likely To Be Down In August

Oil prices have been in a narrow range during APAC trading. They fell earlier in the session but have bounced back to be unchanged, as supply and demand concerns balance out. Stronger equity markets have provided support. The USD index is down 0.1%.

• WTI is currently just above $80 at $80.05/bbl, close to the intraday high of $80.13. It has been under the key $80 level during the session falling to a low of $79.79. Brent is at $84.42, close to the high of $84.47. The low earlier was at $84.11. It is currently down 1.2% this month and WTI -1.5%.
• Demand from China continues to worry the market. Its largest refiner, Sinopec, expects product demand in H2 to be less than H1.
• On the supply side, futures timespreads continue to point to tight supply given OPEC production cuts and the possibility of their extension. Later today US API inventory data is published. Turkey’s energy minister has said that work on a key Iraqi pipeline is about to be finished.
• Later the Fed’s Barr speaks about banking services and there are US June house prices, July JOLTS job openings and August consumer confidence & Dallas Fed services.