Oil fell sharply after data from the US Energy Information Administration showed crude inventories rose 1.1 million barrels in the week ended August 5.
Overall production from the OPEC, of which Saudi Arabia is the de-facto leader, also increased, boosted by producers such as Iraq and Iran, who offset the impact of militant attacks in Nigeria. Based on figures OPEC collects from secondary sources, the organisation pumped 33.11 million bpd in July, up 46,000 bpd from June.
The International Energy Agency in today’s monthly report forecast that oil markets will begin to tighten in the second half of 2016 after month of oversupply.
Investors are waiting now for a speech by Chair Janet Yellen at the US central bank's August 26 symposium in Jackson Hole. The market expects a more hawkish tone from Yellen after Friday's jobs report for July showed better-than-expected employment gains.
We stay USD/CAD short. Our short-term target is 1.2900.
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