Oil prices and Asian stock indexes edged moderately higher on Tuesday morning as traders remain cautious in advance of the Jackson Hole summit. Oil prices were bolstered by signs that supply is being reduced, specifically in the United States where stockpiles have been falling for the past few weeks. U.S. commercial crude inventories have fallen by nearly 13 percent since hitting peaks in March. The latest count puts U.S. stockpiles at 466.5 million barrels despite the fact that production hasn’t slowed significantly of late. U.S. crude production is currently hitting 9.5 million barrels per day, a 25-month high.
U.S. WTI futures were trading at $47.50 per barrel as of 10:47 a.m. HK/SIN, up 0.27 percent. Brent crude futures were up 0.19 percent to $51.76 per barrel.
Asian stock prices also headed higher on Tuesday morning, following a positive close on Wall Street on Monday. South Korea’s Kospi was up 0.37 percent and Australia’s ASX 200 was up 0.24 percent though the Shanghai composite struggled to reach positive territory, trading down 0.18 percent in early trade.
Currency Markets Remain Flat
Currency trading was unexciting on Tuesday morning, perhaps in anticipation of the announcements expected later this week. The euro was down 0.08 percent against the dollar to $1.1805. The dollar did manage to recover slightly against the yen, trading at 109.26 yen, a 0.27 percent increase. If Federal Reserve Chair Janet Yellen hints towards a potential interest rate hike before the end of the year, the announcement could lend support to the dollar which has recently been weighed down by a decrease in confidence about a final rate hike this year.