Crude oil trades lower
Crude oil prices were weaker in the early morning trade on July 19 amid mixed sentiments. At 6:45 AM EST on July 19, the WTI crude oil futures contract for September delivery was trading at $45.77 per barrel, a drop of ~0.37%. Brent crude was trading at $46.76 per barrel, a decline of ~0.45%.
Sentiment was mixed
Crude oil started this week on a weaker note with a decline Monday, July 18, due to supply glut concerns. The increase in the crude oil rig count data, which Baker Hughes reported at the end of last week, dented the sentiment and raised concerns about rising domestic crude oil production. Read Crude Oil Fell on July 18 amid Supply Glut Fears to find out how supply concerns affected crude oil sentiment on Monday, July 18. On the other hand, according to the US drilling activity report released on July 18, US shale oil production is estimated to fall by ~99,000 barrels per day in August, which is a positive sign for prices.
Crude oil market awaits inventory data
The market is looking forward to the weekly crude oil inventory data from the American Petroleum Institute (API) and the Energy Information Administration (EIA). The market is expecting a decline in weekly crude oil inventories by 2.2 million barrels. The inventory data released last week disappointed the market and weighed on prices. At 7:00 AM EST on Tuesday, July 19, major crude oil producers Carrizo Oil & Gas (CRZO) and Canadian Natural Resources (CNQ) rose 2.9% and 0.22%, respectively, whereas Total (TOT) and British Petroleum (BP) fell 0.86% and 1.1%, respectively. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) rose ~0.52% while the PowerShares DB Oil ETF (DBO) fell 1.2%.
The next article will discuss the performance of metals in the early morning hours on July 19.