Oil Edges Higher as Concerns Over Oil Demand Growth are Balanced by Saudi Output Cuts
Nasdaq SECTOR COMMENTARY:
The energy sector is poised for a mixed to lower start, looking past mild strength in the crude complex and pressured by weakness in the major equity futures. U.S. stock index futures slipped, a day after the benchmark S&P 500 marked a 20% rally from lows, while inflation data and U.S. monetary policy decision due next week kept investors on their toes.
WTI and Brent crude oil futures edged higher in early trading as concern over oil demand growth was balanced by Saudi output cuts. Both benchmarks rebounded from an initial slump yesterday after the U.S. and Iran denied a reportby the Middle East Eye that they were close to a nuclear deal that could have brought Iranian barrels back to the market. Meanwhile, expectations of tighter supply and higher demand as the United States enters the summer holiday season, when more people drive, are being offset by worries over a slow pickup in China's fuel demand.
Natural gas futures are retreating as the NOAA 6-10 day outlook shows below-normal temps in the Southwest, with near to below-normal temps in the East, especially across parts of the coastal Mid-Atlantic region.
