August Nymex WTI prices are in modest positive territory Friday, after yesterday’s steep declines saw WTI plunge to eight month lows. August WTI ended Thursday’s session down $3.25, or 4%, at $78.20 a barrel, posting the lowest close seen since Oct 4. A slew of negative economic data, on a global scale, has seen oil prices extend their amazing decline, with U.S. weekly jobless claims coming in weaker than expected yesterday, adding to the woes of weak Chinese manufacturing data and a disappointing result from the Federal Reserve who chose to hold off to adding any aggressive stimulus measures at its last meeting. Prices had also been pressured by the wide anticipation of the Moody’s Investors Service downgrade of 15 top European and U.S. banks, which finally came after U.S. markets had closed. WTI prices declined sharply to lows of $77.94 a barrel at the tail end of NY hours. This morning, in Asia, prices opened around $78.11 and tentatively edged their way back higher to $79.00 a barrel before meeting some more selling pressure. August Nymex WTI is now currently trading $78.51 a barrel, up 31 cents.
EasyForexNews Research Team