September Nymex WTI futures are trading in negative territory Wednesday in tandem with a general extended risk-off tone observed across markets is Asia this morning. WTI continues to trade below $90 for the third consecutive day as negative sentiment once again creeps back into the market. WTI futures ended Tuesday’s session a modest 36 cents higher at $88.50 a barrel after prices had slumped over 4% the previous day. WTI prices opened in Asia this morning around $88.19 a barrel and soon came under pressure to trade down to session lows of $87.85 before turning higher to reach intra-day highs of $88.45. In terms of supply, the closely watched inventory data due out Thursday from the Energy Information Administration (EIA) is expected to show a fall in US crude stocks by 800,000 barrels in the week ended Friday, while refiners clipped operations by 0.2 of a percentage point. Gasoline stocks are expected to show a 500,000 barrel drop, while distillate stocks, including diesel and heating oil, are forecast to rise by 1.1mln barrels. September Nymex WTI futures now trade $88.17, down 33 cents.
EasyForexNews Research Team