WSJ:OIL FUTURES: Crude Edges Lower After Sharp Gains; Bernanke in Focus
By Mari Iwata
Crude-oil futures slipped during Asian trading Monday, paring sharp gains made Friday on the back of better-than-expected U.S. job data.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at $91.26 a barrel at 0613 GMT, down $0.14 in the Globex electronic session. September Brent crude on London's ICE Futures exchange fell $0.19 to $108.75 a barrel.
More gains could materialize if U.S. Federal Reserve Chairman Ben Bernanke indicates the Fed is prepared to launch a third round of quantitative easing to stimulate the U.S. economy in a speech due to be broadcast at 1300 GMT.
Traders will watch the speech closely, as any confirmation of economic stimulus will likely push more money into risk assets, including commodities such as oil. If Bernanke sounds a pessimistic note, however, oil prices could fall.
"If he talks about his view on the economy, it might move the market," Market Strategy Institute analyst Koichiro Kamei said.
If Bernanke's speech doesn't move prices one way or another, prices will likely fluctuate around current levels in relatively thin summer trade, as few important indicators are scheduled this week, analysts said.
"China's consumer price index and industrial output on Thursday can be a focus, but not important enough to get traders scrambling," said Daiichi Shohin analyst Koichi Murakami.
Nymex reformulated gasoline blendstock for September--the benchmark gasoline contract--fell 99 points to $2.9211 a gallon, while September heating oil traded at $2.9199, 62 points lower.
ICE gasoil for August changed hands at $924.25 a metric ton, up $1.25 from Friday's settlement.
