Articles
Crude Oil futures to drop next week: Survey
by Harrey Martin Financial AdviserNEW YORK : West Texas Intermediate crude oil or WTI crude oil futures are poised to drop next week on concern that the US economy may face slowdown thereby curbing fuel demand, a Bloomberg survey result said.
Of the 38 analysts surveyed by Bloomberg News, 24 or 63% said that the futures would drop even as nine analysts predicted a gain and five of them said “no change”. The futures for September delivery closed at $104.63 a barrel on the Nymex on Friday.
The survey comes in lockstep with China slowdown fears as the economy there is about to adjust to idling of industry overcapacity by September and elimination of the same by the end of this year.
This made the futures of crude oil to drop yesterday on the Nymex by 0.7%. The equities too dropped.
The jobless claims in US climbed last week, even as Ben Bernanke said recently that the tapering of QE measures would depend on incoming job, inflation and to an extent housing data.
The rise in jobless claims, in a way surprised the markets as gold futures took that for a cue to rally.
China hitting brakes
Nineteen industries involved in steel, cement and other commodity related operations have been ordered to adhere to the new norms, as the economy in China is focusing more on consumption led growth rather than investment led growth.
“The news that China is ordering the reduction of excess capacity has reignited concerns about slowing Chinese growth and what that’s going to mean for energy demand,” said Gene McGillian, an analyst and broker at Tradition Energy in US to Bloomberg.
“We are still in the midst of a correction after reaching a 16-month high last week,” he noted.
China in a way is readjusting its growth priorities.
“Maintaining 10% growth rate...beyond a point, it is not something sustainable. Chinese Premier Li Keqiang has said that a 7% growth rate in GDP is good,” said Professor Srikanth Kondappilly, Professor in Chinese Studies at Jawaharlal Nehru University, New Delhi reacting to measures adopted by Chinese government to induce a consumption led growth in the economy.
What China so far has witnessed was investment-led growth.
“They were over-investing and it led to over-capacity. There was also this issue of wastage of resources and unbridled expansion into luxury. There popped up a number of cases wherein malls and in a case, city lay unoccupied or vacant in China,” said Mr.Vijayakumar, Chief Investment Strategist at Geojit, South India trying to assess the causes that led to this shift.
Lacklustre Chinese PMI data for the month of June added to the woes of crude oil and metals.
US and China occupies prime two positions when it comes to global crude oil consumption figures.
Get best crude oil tips India to make good earnings in commodity market. ShareTipsExpert now offers free commodity tips for traders. To get instant free mcx commodity tips register now.
Of the 38 analysts surveyed by Bloomberg News, 24 or 63% said that the futures would drop even as nine analysts predicted a gain and five of them said “no change”. The futures for September delivery closed at $104.63 a barrel on the Nymex on Friday.
The survey comes in lockstep with China slowdown fears as the economy there is about to adjust to idling of industry overcapacity by September and elimination of the same by the end of this year.
This made the futures of crude oil to drop yesterday on the Nymex by 0.7%. The equities too dropped.
The jobless claims in US climbed last week, even as Ben Bernanke said recently that the tapering of QE measures would depend on incoming job, inflation and to an extent housing data.
The rise in jobless claims, in a way surprised the markets as gold futures took that for a cue to rally.
China hitting brakes
Nineteen industries involved in steel, cement and other commodity related operations have been ordered to adhere to the new norms, as the economy in China is focusing more on consumption led growth rather than investment led growth.
“The news that China is ordering the reduction of excess capacity has reignited concerns about slowing Chinese growth and what that’s going to mean for energy demand,” said Gene McGillian, an analyst and broker at Tradition Energy in US to Bloomberg.
“We are still in the midst of a correction after reaching a 16-month high last week,” he noted.
China in a way is readjusting its growth priorities.
“Maintaining 10% growth rate...beyond a point, it is not something sustainable. Chinese Premier Li Keqiang has said that a 7% growth rate in GDP is good,” said Professor Srikanth Kondappilly, Professor in Chinese Studies at Jawaharlal Nehru University, New Delhi reacting to measures adopted by Chinese government to induce a consumption led growth in the economy.
What China so far has witnessed was investment-led growth.
“They were over-investing and it led to over-capacity. There was also this issue of wastage of resources and unbridled expansion into luxury. There popped up a number of cases wherein malls and in a case, city lay unoccupied or vacant in China,” said Mr.Vijayakumar, Chief Investment Strategist at Geojit, South India trying to assess the causes that led to this shift.
Lacklustre Chinese PMI data for the month of June added to the woes of crude oil and metals.
US and China occupies prime two positions when it comes to global crude oil consumption figures.
Get best crude oil tips India to make good earnings in commodity market. ShareTipsExpert now offers free commodity tips for traders. To get instant free mcx commodity tips register now.
Sponsor Ads
About Harrey Martin 
Financial Adviser
189 connections, 5 recommendations, 549 honor points.Joined APSense since, December 27th, 2012, From Delhi, India.
Created on Dec 31st 1969 18:00. Viewed 0 times.
Comments
No comment, be the first to comment.
