Asian stock markets were little changed Tuesday after Wall Street closed.
Advertisement
Last week, US drillers added oil rigs for a sixth consecutive week, according to a Baker Hughes report, as producers continued boosting spending on expectations for higher prices in the future.
Japan’s Nikkei 225 finished 0.7 percent higher at 16,764.97 and South Korea’s Kospi climbed 0.6 percent to 2,043.78. Stocks in Australia, Taiwan and the Philippines were higher.
CHINA DATA: China’s consumer price index gained 1.8 percent last month over a year earlier, slower than June’s 1.9 percent, Xinhua said citing the National Bureau of Statistics.
Data out of China showing that consumer price growth declined in July for the third month in a row helped fuel expectations among investors that Beijing will pump out more stimulus in a bid to soften the slowdown in the world’s second-largest economy. Target slid $2.26, or 3 percent, to $72.74.
NEW YORK-Oil prices fell Tuesday as US government forecasters raised their outlook for domestic production and traders grew skeptical that the Organization of the Petroleum Exporting Countries would consider production caps next month.
Crude oil prices took a dramatic turn on Monday evening and Tuesday morning, rising above $45 a barrel as the president of the Organisation of Petroleum Exporting Countries (OPEC) gave market assurance of a September rise. Oil prices rose after reports of a new OPEC meeting.
OPEC sources have been saying since June that renewed talks about a global output freeze could take place in September, when most members, plus non-members such as Russian Federation, are expected to attend an International Energy Forum meeting in Algeria.
“While a deal is highly unlikely to eventuate, the fact that it is even being mentioned shows how much difficulty the past month’s renewed selloff was causing many struggling OPEC members”.
USA stock indexes edged higher in early trading Tuesday, following gains in global stock markets as slack Chinese consumer price figures stoked expectations of more stimulus.
Expectation of higher crude oil demand in the third and fourth quarters of 2016, coupled with decrease in availability, is leading the analysts to conclude that the current bear market is only temporary and oil price would increase during later part of 2016, he said. Eastern time. The Standard & Poor’s 500 index gained five points, or 0.3 percent, to 2,186. The Nasdaq composite index added 14 points, or 0.3 percent, to 5,227.
A barrel of West Texas Intermediate for September delivery fell 25 cents to $42.77 on the New York Mercantile Exchange, after having risen almost a dollar and a half the day before.
Advertisement
Market intelligence firm Genscape reported a build of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for WTI futures in the week to August 5, traders said, even as analysts forecast a total USA crude inventory drop of 1 million barrels.
