October Nymex WTI prices are trading lower Friday, extending their losses from the previous session. October WTI ended Thursday’s session 99 cents lower at $96.27 a barrel as prices corrected back lower after a decent sequence of runs to the upside. CTA flows were thought to be responsible for the bulk of the selling amid speculation that expectation levels for a conflict with Iran had been priced in too much to the market. Prices in WTI were also sent into corrective mode after St Louis Federal Reserve President James Bullard stated that the economic outlook may have brightened since the July 31-Aug 1 meeting, which suggests to some market participants that the Fed minutes may have been a bit stale. Oil has reacted the most negatively to the Fed official’s comments compared to other risk assets. October WTI has extended downwards overnight from opening highs of $96.14 a barrel to hold at session lows of $95.59, with the market now trying to consolidate above the intra-day low currently trading $95.80, down 47 cents on the session.
EasyForexNews Research Team