West Texas intermediate crude futures dropped as it traded lower on Tuesday, moving back from the yesterday’s session on the weakness in the U.S dollar. WTI crude futures pushed back by 0.41% to $93.07 per barrel, as Brent Crude futures stood at 0.24% to $101.82 per barrel.
The US dollar index increased by 0.13% to 82.762. The Oil market is reacting to the fluctuations of the currency than the supply and demand mechanism, according to the market analysts.
An estimated 650,000 is expected to drop in stockpiles, according to reports from the government inventories released on Wednesday, declining from the 82-year high.
For the July settlement, Brent crude slid 24 cents to $101.82 a barrel on the ICE Futures Europe exchange. Increased from yesterday’s grade of $8.61, Europe’s benchmark grade rose to $8.77 to WTI Futures.
The U.S refineries boosted the operating rates, rising 0.6 percentage points to 87 percent of capacity, according to the Bloomberg survey.
The survey also indicated a possible increase of 1.2 million barrels in gasoline supplies last week, while inventories may have gained an estimated 1.5 million barrels.
The Institute for supply management (ISM) index of manufacturing activity for the month of May closed at 49.0, while this month’s ISM manufacturing purchasing managers’ index (PMI) indicates that it’s at its lowest since June 2009.
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