Day Traders see US slowing down, demand slows and crude oil drops

Paula Dittrick

OGJ Senior Staff Writer

HOUSTON, July 26 — US crude oil prices dropped on the New York Mercantile Exchange July 25, which analysts attributed to cautiousness by traders because talks appeared to have stalled in Washington, DC, regarding an agreement to raise the government debt limit and avoid a default by Aug. 2.

The US Congress is divided as lawmakers pursue rival budget plans, potentially bringing the government closer to a debt default that could undermine global markets.

Standard Bank analyst Leon Westgate described crude oil prices as “half-heartedly tracking the dollar,” and he noted both North Sea Brent and West Texas Intermediate “are consolidating and trading sideways.”

US light, sweet crude’s discount against Brent crude was $18.74 at the close of trading July 25, narrowing from $18.89 on July 22.

Westgate expects energy prices to be influenced by US government debt limit talks “the new few days.” Meanwhile, oil futures trading volumes were light July 25…

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