On Monday, official data showed that Chinese demand for crude oil declined in July, which together with a stronger greenback and concerns over a rise in OPEC output weighed on investors’ sentiment and pushed the price of the black gold lower. As a result, light crude lost 2.52% and closed the day below $48. How low could the commodity go in the coming days?
The British Pound is trying to steady its stance at 1.28, after stronger than expected UK wage growth figures spared it from further losses, following a heavy decline noted in the latest inflation figures that were released yesterday.
The pound, already out of favor ever since the Bank of England's last policy meeting a couple of weeks ago, fell further yesterday in response to softer-than-expected UK inflation figures. The BoE's willingness to keep monetary policy extremely accommodative was beginning to make sense again, especially as the issue of Brexit still hangs over the markets. Today, however, the ONS reported some solid jobs and wages data, which led to a relief rally in sterling.
In the battle between the bulls and the bears, the one trend that remains constant is the trend of falling U.S. crude oil supply. Once again, the crude oil supply drop far exceeded market expectations, and according to data from the American Petroleum Institute, it fell by 9.2 million barrels last week.