Monday, January 20, 2014

Macro economy affecting crude prices at week’s head

Chinese economy expanded by 7.7% in 2013, according to the statistics bureau in Beijing. In the U.S., the pace of home construction declined less than projected in December, capping the strongest year for the sector since 2007, Commerce Department data showed on Jan. 17. Industrial production increased for a fifth month. Large speculators reduced bullish bets on WTI by 17,455 futures and options combined to 229,722 in the week ended January 14, according to the Commodity Futures Trading Commission. That’s the lowest level since November 26.
West Texas Intermediate crude fell from the highest closing price in the last fourteen days after government data showed that industrial output slowed last month in China, the world’s second-biggest oil consumer. Futures lost as much as 0.8%. Factory production rose by 9.7%, according to China’s National Bureau of Statistics. WTI capped its first weekly gain since December on January 17 amid signs the U.S., the largest oil user, will sustain its economic growth. March future was down 66 cents at $93.93, as it is shown in the chart above. The volume of all contracts traded was about 20% below the 100-day average.

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