August Nymex WTI prices are trading in negative territory Monday, staging a moderate correction after Friday’s strong advance. WTI was above $85 a barrel early on in the Asian session before prices began to slip back in tandem with a correction lower in the euro, after the release of HSBC’s flash purchasing managers index (PMI) for June showed an eighth straight month of deterioration for manufacturing conditions in China, with the final June PMI reading at 48.2 versus a flash reading of 48.1. Despite some moderate extensions higher in Asian stocks, higher risk assets such as the euro and oil have corrected back from some of the strong gains seen on Friday. WTI steadily fell back from opening highs of $85.05 a barrel to session lows of $83.66, pressured by the Chinese data, with some market participants wary of a possible risk correction taking place when European markets get under way. August WTI is currently trading $83.81 a barrel, down $1.15 from Friday’s NY close.
EasyForexNews Research Team