Crude oil prices retreat due to profit taking

Thursday, May 14, 2015

Crude oil prices gave back yesterday’s gains and slid lower this morning due to some profit taking following the recent strong gains in the oil market. WTI front month futures declines towards $60 per barrel and Brent futures slid lower towards $66 per barrel. The weekly EIA oil inventories report showed yesterday a decline of 2.19 million barrels in crude oil stocks, confirming a drawdown in crude oil inventories for second consecutive week. WTI front month futures initially spiked and extended gains on the news, while the softer USD supported the upside momentum yesterday. However, this morning crude oil prices reversed and slid slightly lower as investors were prompt in locking recent gains.  

Brent front month futures retreat due to profit taking

CLM5 Comdty (WTI CRUDE FUTURE  J 2015-05-14 08-51-04 

Asian equity markets traded lower overnight as the Hang Seng index extended declines for third consecutive session towards 27,200, while the Nikkei index came under renewed pressure and retreated nearly 1% to retest 19,570. In the US, both the Dow Jones and the S&P 500 indices ended yesterday’s session flat following disappointing retail sales data which weighed on market sentiment.

In the UK, the RICS house price balance surged 33% in April compared to 21% in March, beating analysts’ expectations of a more modest 22% increase. The pound sterling climbed higher this morning to retest 1.5770 against the US dollar. However, sterling weakened against the euro and slid lower for second straight session towards 1.3800.

European equity markets reversed yesterday’s gains and came under renewed pressure this morning. The CAC, DAX, IBEX and London equity benchmark indices declined sharply in early trade between 0.9% and 1.2%. However, the euro continues its strong uptrend against the USD breaching above 1.1400 this morning.

EURUSD Spot

EUR Curncy (Euro Spot )  Daily 14 2015-05-14 08-48-09

 

Events for today:

0001

UK

Apr

RICS House Prices

1330

US

w/e

Jobless Claims

1330

US

Apr

PPI Final Demand

All times UK Local Time

 

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