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Uncertainty in Data Clouds Oil Market

Short term oil pricing is uncertain leading into mid-August. The Washington Post reports that market trading volume has decreased in anticipation of new reports from a number of sources.

“The U.S. Energy Department, the International Energy Agency and the Organization of the Petroleum Exporting Countries all this week release their latest assessment of the energy markets, which includes a forecast for worldwide demand for oil. Analysts are anticipating some downward revisions, given a slowdown in China’s economy.

‘The slowed Chinese growth will be demanding of additional downward adjustments in global demand estimates by the various agencies,’ wrote Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, in a note to clients.

The market did have a swing of about $2 during Monday’s trading. A week ago, oil jumped nearly $5 on Wednesday and Thursday as the global economic picture seemed to brighten, even as central bankers in the U.S. and Europe indicated they’d maintain programs that helped to keep interest rates low. Then Friday, disappointing figures on hiring in the U.S. pushed oil down by 95 cents, though it still ended the week with a gain of more than $2 a barrel.”

We at Pumps are monitoring this incoming data closely and will follow the market moves as more information as it becomes available. Contact us to sign up for our monthly report with a review of the most influential stories so far in August.

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