September crude oil traded lower during the initial morning hours, as economic slowdown fears clouded demand prospects. Some traders indicated that growing risk aversion and concerns over demand have pressured prices in recent sessions. Even a sharply lower US Dollar this morning provided little help to slumping crude oil prices. Yesterday's passage of the Debt Limit Increase Bill provided little support to the market and seemed to compound fears that added fiscal restraint could put the US economy into a double-dip recession. These negative factors put even more strain on a sluggish demand outlook for crude oil. Expectations for this morning's EIA inventory report call for a build of 1.0 million barrels. There is a chance that Gulf of Mexico supply disruptions due to Tropical Storm Don last week could offset a portion of the 4.5 million barrels of SPR supplies that have been released.
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.