Delegates from the OPEC group said they are not worried about a slide in oil prices towards $100 per barrel, with current levels seen as acceptable for producers while higher seasonal demand in the coming weeks was expected to support the market.
Crude inventories fell by 1.4mn barrels, gasoline inventories fell by 2.1mn barrels, as per API. Expected EIA inventories: Crude oil -1.75mn barrels and gasoline -1.6mn barrels. Natural gas futures traded firm on NYMEX, as forecasts showed hotter-than-normal U.S. weather that would boost demand for the power-plant fuel after the coolest July in 5-years.
Crude oil started the day’s session in positive, but traded in a narrow range in the Asian and the European session. However, prices fell sharply after they breached support at 5735. Oil prices now hold immediate support at 5665 & next at 5620, with resistance at 5710 & 5742.
Natural gas prices declined in the opening trades, but the commodity moved up steadily forming higher highs and higher lows on intra-day charts. Prices now hold immediate support at 234 and next at 230, while resistance holds at 238.2 and next at 241.