By
/schema.org/Person" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; display: inline-block; color: rgb(102, 102, 102); background-position: 0px 0px;"> KEVIN BAXTER
On London’s ICE Futures, trading in the global crude benchmark Brent at 0840 GMT was down 0.55% at $49.06 a barrel for cargoes loading in October. Trade in WTI was also extremely slow with prices down 0.5% at $45.56 a barrel on the New York Mercantile Exchange.
Traders said volumes were subdued, with the U.S. market closed for the Labor Day holiday.
European nations are expected to report their second quarter growth numbers later this week, and disappointing data could depress the oil market, traders said. Singapore-based Phillip Futures believes the Brent and WTI prices to $46.81 and $43.53 respectively by Friday.
Increasing supply from members of the Organization of the Petroleum Exporting Countries, especially from Iran, further dampens any bullish sentiment.
“We cannot see anything in the short term that is going to prop up prices to any great extent,” said Phillips Futures’ analyst Daniel Ang. “However, higher seasonal demand should kick in soon and have an effect on inventories which in turn should have a positive impact on prices.”
Also this week, the Paris-based International Energy Agency will release its monthly report, which will contain the full outlook for crude oil in 2016, but traders aren’t expecting any major surprises.