September Nymex WTI futures are trading modestly lower Friday after posting an eight-week high during the previous session. August futures, which expire today, ended Thursday’s session at $92.66 a barrel, up $2.79, after trading up to an intra-day high of $92.94, the highest level seen since May 22. Continued violence in Syria has raised concerns about a potential regional disruption to oil supplies, whilst market participants in oil also remain on edge after US defence secretary Leon Panetta’s warning that any attempt by Iran to block the Strait of Hormuz, where around 17mln barrels of oil pass through on a daily basis, would trigger a US military response. September WTI futures have been pinned in a fairly tight range during Asian traded hours this morning, with prices so far holding around session lows of $92.21 a barrel before edging their way back to highs of $92.63. The market is currently trading around the mid-point of today’s narrow range at $92.42 a barrel, down 55 cents from the NY close.
EasyForexNews Research Team