Oil prices started off the week with a sharp tumble but throughout the rest of the week both Brent and WTI recovered. The news of the decline in new home sales and pending home sales didn't seem to affect the oil market. Even the modest growth in U.S GDP for Q2 didn't seem hold back the recovery of oil prices. During the week, WTI oil declined by 1.43%; Brent oil, unlike WTI, finished the week 0.55% higher than the previous week.
During the upcoming week there are several reports that may affect oil market including the U.S non-farm payroll report, FOMC meeting, manufacturing PMI of China and U.S and EIA weekly oil report.
Main Oil Related News Items for the upcoming week
Tuesday – Canada's GDP by Industry: In the previous report regarding April 2012, the real gross domestic product rose by 0.3%. This report may affect the strength of the Canadian dollar exchange rate which is strongly correlated with commodities rates;
Tuesday – China Manufacturing PMI: the Manufacturing PMI for June 2012 edged down to 50.2; if the index will continue to fall it could adversely affect commodities prices;
Wednesday – U.S. ISM Manufacturing PMI: This report will refer to the monthly developments in the manufacturing sector on a national level during July 2012. During June 2012 the index tumbled down to 49.7%, which means the manufacturing is contracting; this index might affect forex, crude oil and natural gas markets;