SHANGHAI, Jul. 19 (SMM) – US crude oil inventories June housing starts and construction permits will be released today. The US dollar plummeted overnight, and closed down 0.51%. The US dollar will remain low due to doubt about health care and other reforms by Trump. Base metals diverged overnight and will remain range-bound today.
US annualized housing starts in May hit an 8-month low, and construction permits fell for 3 months in a row. Weakening building industry triggered concerns over real estate market. Housing starts and construction permits may improve in June, meaning property demand is still bolstered by strong labor market. If salary improves, activities in the real estate market will increase.
EIA crude oil inventories released last week fell 7.56 million barrels, the biggest weekly decline in 10 months. If today’s data fall further, oil prices will strengthen. Lipow Oil Associates President Andy Lipow expects crude oil and gasoline prices to fall further since refineries still have profit, and hopes to expand capacity to the utmost. API’s oil inventories released this morning increased 1.63 million barrels, weighing down oil prices. EIA oil inventories due for release this evening will be key indicator which will decide whether oil prices will rise.
