Thursday, 28 July 2016

Five day slump brings oil slightly higher

After a five straight sessions slumped oil moved up in Asia on Thursday. According to Guardian US energy department data showed that inventories were 13.4% higher while gasoline were 11.8%.
This is an indication that demand is still weak as the holiday driving season closes.

Bargain buyers on Thursday moved to help the weaker dollar after the Federal Reserve indicated US interest rate increase will be slow  and measured.

In-spite of the fact that there is still a surplus, the oil price is going to have a difficult time sustaining any rally because of that that.An analyst David Lennox stated this at Bloomberg News in Sydney.

The $40 barrel looks like the base at the moment and its ending towards the end of the drive season The market probably according to Guardian is going to weaken.

Prices fell to a nearly a 13 year low below $30 a barrel in February hit by an oversupply,low demand and worries over China's slowing economy.


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