Oil market news

Mon, Sep 11 2017, 06:48 GMT

by Fort Financial Services

Oil futures edged higher in Asian hours on Monday as market participants realised the impact of hurricane Irma was not as damaging as initially forecasted and awaited strong crude demand from China in the light of a more solid yuan.

 

The US West Texas Intermediate crude futures were trading 0.86 percent higher at $47.89 per barrel as of 05:35 GMT, while the London-based Brent contracts were up 0.52 percent to trade at $54.06 per barrel on the ICE Futures Exchange.

 

Hurricane Irma made landfall in Florida on Sunday morning, cutting energy supplies to almost 2.5 million residents and with more than 5 million people ordered to leave their homes.

 

The United States is not the first stop of this storm, which left several casualties in the Caribbean over the last week. Yesterday, Irma is a Category 4 storm on the five-step Saffir-Simpson scale and it brought to coast winds of 130 miles per hour.

 

The Chinese yuan rose to its highest level since mid-2016 against the dollar earlier in the session, which is great news for dollar-priced commodities imported by the Asian giant.

 

A stronger yuan makes those purchases cheaper, allowing buyers to increase the size of their orders or at least reduce costs to promote local growth.

 

Ahead in the week, traders will focus on fresh inventories reports from the American Petroleum Institute (API) on Wednesday and official figures from the US Energy Information Administration (EIA) on Thursday. Baker Hughes will release its weekly oil rig count on Friday.

 

Also, the Organization of Petroleum Exporting Countries (OPEC) and the Paris-based International Energy Agency (IEA) are due to present their monthly reports on global oil supply and demand, which provides investors with a clearer picture of future market conditions.

Published on Mon, Sep 11 2017, 06:48 GMT

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