BULLISH FACTORS FOR CRUDE OIL
Bullish factors included :
(1) The weaker dollar, which encourages investment demand for commodities.
(2) the smaller-than-expected increase in weekly crude oil inventories (+950,000 bbl versus expectations of +1.5 million bbl), and
(3) the first increase in three months in the Jul China non-manufacturing index, which may keep demand strong in the world's second-largest crude oil consuming country.
It’s hurricane season so traders should continue to monitor weather conditions in the Gulf of Mexico to see if they will have any impact on refinery output. So far there have been no slow downs. This event would likely trigger a short-covering rally which coincidentally would occur if the market reaches an oversold level.
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