On Monday the price of energy fell insignificantly. A barrel of Brent crude now costs $67.22 (-0.10%) and the market believes a barrel of WTI to be worth $59.10 (-0.05%). During the Asian session, the fall in commodities’ prices was rather more significant as Chinese statistics disappointed investors. The Chinese April PMI index in the manufacturing sector fell to 48.9 points against a previous 49.2. This stat has real significance since China is still one of the world’s biggest oil importers.
Additional fundamental pressure could come from earlier released news about Iraq increasing their export output. In March their exports of oil was 2.980 million barrels and in April reached 3.077 million.
These two drivers, Iraq and China, are having a real effect on the market. World oil reserves and oil products are at high that they’ve not been for many years; Cushing’s US oil reserve capacity is almost completely full.
Statistics on the Eurozone and the US will be released on Monday; investors could find their publication as an additional driver. Brent crude today is trading in the range of $66.75 to $67.55. Technically, resistance is at $68.10 and if it is broken, the path to $70 per barrel will be open.