SAN FRANCISCO (MarketWatch) — Crude-oil futures rose Monday, recouping some of their steep losses last week and notching their largest one-day percentage increase in nearly two weeks. On the New York Mercantile Exchange, light, sweet crude futures for delivery in September CLU4 +0.13% ended at $98.29 a barrel, up 41 cents, or 0.4%. That broke a five-session losing streak. September Brent UK:LCOU4 +0.11% crude on London’s ICE Futures exchange rose 57 cents, or 0.5%, to end at $105.41 a barrel. Nymex crude last week posted its largest one-week percentage decline since the week ended Jan. 3, falling 4.12%, and has been down for four of the past six weeks. Brent crude lost 3.28% last week and has been down for five of the past six weeks. “Although there’s room for the flow of selling to continue, the decline of the past six weeks certainly means that the market has become more conservatively valued, no longer overbought, and with much less of a geopolitical risk premium in the price,” analyst Tim Evans at Citi Futures said in a report. Money managers lowered their net long exposure -- or bets that prices will rise -- by 38,801 contracts in the week ended July 29, to the lowest level since November, according to Citi Futures’s Evans. “The flow is bearish, with some potential to continue,” Evans said. Analysts polled by Platts expect a weekly government inventories report due Wednesday to show a drop of 1.9 million barrels of crude oil for the week ended Aug. 1, boding well for futures prices.
Posted on: Tue, 05 Aug 2014 03:55:55 +0000
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