WTI near a three-day high

West Texas Intermediate traded near a three-day high before a government report forecast to show crude stockpiles dropped for a second week in the U.S., the world’s biggest oil consumer. U.S. gasoline inventories probably slid by 1.6 million barrels in the week ended August 22, according to the estimate. The API in Washington reported a decline of 3.2 million, Bain Energy said. Distillate-fuel supplies, including heating oil and diesel, are projected to remain at 121.5 million barrels after three weeks of decreases. The industry report yesterday showed a gain of 2.4 million. The API collects information on a voluntary basis from operators of refineries, bulk terminals and pipelines, while the government requires that reports be filed with the EIA, the Energy Department’s statistical arm. In Iraq, the president of the Kurdish Regional Government, Massoud Barzani, said he’s asked Iran for ammunition to fight insurgents, according to the Persian Gulf nation’s Mehr news agency. The conflict in Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, has spared oil facilities in the south, home to about three-quarters of its crude output.

Futures rose 0.3% in New York. Crude inventories probably shrank by 2.5 million barrels to 360 million last week, according to the estimate before data from the Energy Information Administration today. The American Petroleum Institute was said to have reported that supplies fell by 1.3 million barrels. Iran is joining efforts to back Iraqi Kurds battling Islamic State militants who have captured swathes of northern Iraq. WTI for October delivery was at $94.10 a barrel in electronic trading on the New York Mercantile Exchange, up 24 cents. It climbed 51 cents to $93.86 yesterday, the highest close since August 21. The volume of all futures traded was about 52 percent below the 100-day average for the time of day. Prices are down 4.4 percent this year.

 To read more visit us at WWW.ICMBrokers.com

The waited crude oil inventories report

U.S. gasoline inventories probably shrank by 1.7 million barrels in the week ended August 15, according to the estimate. Distillate stockpiles, including heating oil and diesel, are forecast to have decreased by 300K barrels. Refinery utilization probably slid by 0.45 percentage points to an average 91.15% of capacity, a survey shows. In Iraq, the U.S. will continue “limited” air strikes against Islamic State insurgents, President Barack Obama said yesterday. The U.S. conducted 35 fighter, bomber and drone attacks over the past three days, disrupting their approach on the city of Erbil and allowing Iraqi and Kurdish forces to recapture the Mosul dam. The conflict in Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, has spared the south, home to about three-quarters of its crude production. The nation pumped 3 million barrels a day last month.

West Texas Intermediate advanced for the second time in three days before supply data that may signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Futures climbed as much as 0.7% in New York. Crude stockpiles probably fell by 1.75 million barrels to 365.3 million last week, expectations say. WTI for September delivery, which expires tomorrow, gained as much as 64 cents to $97.05 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.66. The more-active October contract was up 41 cents at $94.16. The volume of all futures traded was about 8.8 percent above the 100-day average for the time of day. Front-month prices declined 1.8 percent this year.

To find more visit us at WWW.ICMBrokers.com

Euro little changed after Draghi rate pledge

The euro was little changed after the European Central Bank kept its monetary policy unchanged and President Mario Draghi said interest rates will stay at present levels for an extended period.

The euro traded at $1.3379 after sliding to $1.3333 yesterday, the weakest level since November 8. The euro-area recovery is moderate and uneven, and inflation expectations remain firmly anchored, Draghi told reporters in Frankfurt.

The euro has weakened more than 4 percent versus the dollar since May 8, when Draghi signaled policy makers would ease monetary policy the following month if needed. It extended losses since June 5, the day ECB policy makers lowered the refinancing rate and moved the deposit rate below zero for the first time.

The policy meeting comes against the backdrop of mounting political crisis. Russia has massed troops along its border with Ukraine and President Vladimir Putin retaliated yesterday against European Union and U.S. sanctions by ordering restrictions on food imports.

To read more visit us at: www.ICMBrokers.com

Pound falls first time in three days as shop prices drop

The pound fell for the first time in three days versus the dollar as a report showed U.K. shop prices dropped by a record last month, indicating inflation pressure remains subdued.

Sterling weakened all but two of its 16 major counterparts as separate data showed U.K. industrial output climbed less than analysts forecast in June. Industrial production increased 0.3 percent after sliding a revised 0.6 percent in May, the Office for National Statistics said.

The pound fell 0.3 percent to $1.6839 after climbing 0.4 percent in the previous two days. Sterling dropped to $1.6814 on Aug. 4, matching the lowest level since June 12. 

The British Retail Consortium said today prices at stores fell an annual 1.9 percent, the most since the series began in 2006. Food price inflation slowed to a record low 0.3 percent from 0.6 percent.

Manufacturing production increased 0.3 percent in June from the previous month, the U.K. statistics in London said. Factory output dropped 1.3 percent in May, the most since January 2013.

To read more visit us at: www.ICMBrokers.com

Pound Rises for Second Day Versus Euro on Services Growth

The pound rose for a second day against the euro as a report showed U.K. services activity grew at a faster pace in July, exceeding analysts’ estimates.

Sterling strengthened against most of its major peers as Markit Economics said its purchasing managers’ index climbed to 59.1 last month from 57.7 in June. 

Ten-year government bonds fell for the first time in three days, with yields rising from the lowest close since May. Sterling was little changed at $1.6871 after falling to $1.6814 yesterday, matching the least since June 12. Jones estimates the pound will strengthen to $1.7250 and 75 pence per euro by the end of this year, he said.

Bank of England officials will keep the benchmark interest rate at a record-low 0.5 percent at the end of this month’s monetary policy meeting on Aug. 7, according to economists.

To read more visit us at WWW.ICMBroker.com