Commodity Daily News

Oil Prices Looks To Continue To Declining Trend.

Crude oil was little changed juts above $112 a barrel amid signs Tropical Storm Fay will miss rigs and platforms in the Gulf of Mexico, which accounts for about a fifth of U.S. production. U.S. Crude Oil and gasoline inventories fell last week, according to an Energy Department report on Aug. 13. The report showed that U.S. fuel demand averaged 20.2M barrels a day, down 2.8% from a year earlier.
At a time when U.S. energy policy is increasingly focused on importing crude from Canada and replacing gasoline with alternative fuels, the situation in Georgia and the interruption of Azerbaijani shipments makes a bearish statement for this week's Oil trading as well. In addition, an OPEC forecast of lower demand put downward pressure on prices. In its monthly Oil report, the organization forecast world appetite for Oil this year overall will fall by 30,000 barrels a day.