Crude Oil Prices Extends Drop to $95
Futures prices of light, sweet crude extended their drop in the latest electronic trading session, placing the contract on its way to a slight decline for the current week as a whole.
During the Asian trading hours in the NYMEX, the oil price per barrel for delivery in October had a 0.5%, or 50-cent, loss to $95.78. Crude was trading lower by 0.4% in the present week.
Profit taking saw crude oil futures prices decline in the recent session on the New York Mercantile Exchange after settling higher in almost 6 of the last 7 sessions.
The high oil price per barrel was initially sustained in the recent trading as weak manufacturing data in China stirred hopes for additional stimulus efforts from the authorities of the second biggest economy worldwide.
According to Deutsche Bank’s commodity strategists, while the latest decline in the economic growth of China may affect oil demand prospects, increasing expectations for the potential for more quantitative improvement, and persistent constraints on oil supply pose more potential for current crude prices.
A stronger US currency causes another headwind for the current crude prices, with the dollar index on the ICE moving up from 81.298 to 81.402 in the latest North American trading.
A stronger U.S. currency is not beneficial for commodities that are priced with the dollar, such as crude, because they become cheaper for those who hold other currencies.
Elsewhere in the energy markets, natural gas prices for September delivery compensated for its 2-cent decline in the previous trading day as it gained back those 2 cents to reach $2.82 per million BTU. The price of heating oil for delivery in September was lower, to $3.13 per gallon, while gasoline for September moved up by less than a penny to $3.12 per gallon.