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Oil prices little changed as market shrugs off Turkey coup bid

Posted by: Admin | Posted on: July 18th, 2016 | 0 Comments

SINGAPORE Oil prices were little changed in early Asian trade on Monday as traders shrugged off the impact of Friday’s attempted coup in Turkey.

A stronger dollar weighed on prices, although upbeat economic data from the United States and China that supported the outlook for global oil demand lent support.

U.S. crude futures fell 12 cents to $45.83 a barrel as 0041 GMT after ending the previous session up 27 cents, gaining more than 1 percent for the week.

Brent crude futures slipped one cent to $47.60 a barrel after closing up 24 cents in the previous session, having gained nearly 2 percent for the week.

“The market is looking past the coup,” said Ric Spooner, chief market analyst at Sydney’s CMC Markets.

“There is no disruption to shipping. There is nothing in terms of short-term risk (to oil supply),” he said.

Istanbul’s Bosphorus Strait, a key chokepoint for oil which handles about 3 percent of global, shipments mainly from Black Sea ports and the Caspian region, was reopened on Saturday after being shut for several hours after Friday’s attempted military coup.

“Despite the prospect of some risk appetite waning after the attempted coup in Turkey, its potential impact on oil supply should see commodities remain supported,” ANZ said in a market report on Monday.

The dollar index nudged higher against a basket of currencies in early trade on Monday. A stronger greenback makes dollar-priced commodities more expensive for holders of other currencies.

But buoyant economic data from the U.S. and China on Friday, the world’s two biggest economies, lent support to oil prices.

“There was another set of strong retail sales data (on Friday) – U.S. GDP numbers have done pretty well in the second quarter,” Spooner said.

U.S. retail sales rose more than expected in June as Americans splurged on motor vehicles and other goods, while U.S. industrial production recorded its biggest increase in 11 months in June, official data on Friday showed.

Data on Friday also showed China’s economy grew faster than expected in the second quarter, fueled by government spending.

(Story refiles to correct “little unchanged” to “little changed” in first paragraph.)

(Reporting by Keith Wallis; Editing by Richard Pullin)

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