Outlook/Commentary for Crude oil for the coming month

Key events that influenced price movements:

1. The Conference Board Leading Economic Index for U.S. increased 0.1 percent in July to 109.8, following a 0.3 Percent decline in June, and a 0.5 percent increase in May.

2.US FOMC in its interest meet reported U.S growth will be more modest than expected and said it will keep interest

rate lower for prolonged period.

3.Macro economic data from U.S throw up series of disappointing numbers raising growth concerns.

4.US vehicle sales aggregated to 10,45,092 units in July, up 5% year on year.

5. China’s passenger car sales in July increased 15.4% year on year to 822,300 units. Total auto sales were up 17%

year on year to 1.06 million units in July.

6.U.S Refiners boost production thus pushing demand for oil before the long maintenance period but end use lags as

products pile up.

7.Lack of hurricane related disruption.

8.Chinese crude oil imports drops 15% on month in July.

9.China ordered more than 2000 steel, cement and other energy-intensive factories be shut down by the end of

September.

New crude oil storage facilities come up for usage in China.

Outlook :

We Recommend Crude to move in Range of 72$ - 79$ for the month.

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