Shutterstock photo
Markets

Crude futures drop on U.S. supply concerns

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - U.S. crude futures dropped on Tuesday amid concerns that this week's supply data will depict a U.S. economy that is awash in crude.

In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in September traded down 0.82% at $100.84 a barrel during U.S. trading. New York-traded oil futures hit a session low of $100.38 a barrel and a high of $101.82 a barrel.

The September contract settled down 0.41% at $101.67 a barrel on Monday.

Nymex oil futures were likely to find support at $99.60 a barrel, the low from July 16, and resistance at $102.10 a barrel, Monday's high.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday's government report could show crude stockpiles fell by 1 million barrels in the week ending July 25.

Despite concerns that conflict in Ukraine and across the Middle East may disrupt supply, shipments have continued to flow normally, with sentiments that the U.S. is brimming with crude oil often overshadowing upbeat U.S. data.

The Conference Board reported earlier that its consumer confidence index rose to 90.9 in July from an upwardly revised 86.4 in June. It was the highest reading since October 2007, defying consensus forecasts for a decline to 85.3.

Investors were also keeping an eye on the release of July's nonfarm payrolls report due for release on Friday as well as revised second-quarter U.S. growth data on Wednesday.

A more robust U.S. economy should demand more fuel and energy though slackness in the housing market dampened spirits on this week.

Earlier Tuesday, The 20-city S&P/Case Shiller Home Price Index composite index for May grew 9.3% year-over-year, down from April's 10.8% reading, though the 10-city index grew 9.4%, down from April's 10.9%.

On Monday, the National Association of Realtors reported that U.S. pending home sales fell 1.1% in June, disappointing expectations for a 0.5% gain.

Separately, on the ICE Futures Exchange in London, Brent oil futures for September delivery were down 0.10% and trading at US$107.47 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$6.63 a barrel.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx