Crude oil: Crude oil prices look to Asia as those markets start the week off a bit shaky. Oil looks as it is getting ready to have a substantial breakdown yet it continues to hang around failing to decisively breakdown. That might be because the market believes in Ben Bernanke. The Fed is getting ready to kick off a two day meeting. The oil market seems to believe that the Federal Reserve will send signals that it's easy money policies will continue. Remember in recent years actions by global central banks have caused the biggest moves in oil than any other factor.
Bloomberg reported "The yen strengthened and emerging-market stocks dropped as Chinese industrial companies reported slower profit growth. U.S. equity-index futures retreated before a report on pending home sales, while European shares rose. Japan's currency appreciated 0.5% to 97.77 per dollar at 6:18 a.m. in New York, climbing for a third day and touching a one-month high. Natural gas declined to a four-month low and oil slid 0.2% to $104.51 a barrel. The Shanghai Composite Index dropped 1.7%. Standard & Poor's 500 Index (SPX) futures lost 0.3%, while the Stoxx Europe 600 Index increased 0.2%. Net income at Chinese industrial companies rose 6.3% in June from a year earlier, data showed on July 27, down from 15.5% in May."
Of course, Egypt still is in play. A major crackdown on the Muslim Brotherhood is creating unease in the Obama Administration. That is giving Brent crude oil some support. This comes as peace talks restart between the Israelis and Palestinians.
Natural gas: Tropical Storm Dorian weakened and lost its name causing a sizeable drop in natural gas prices. As of now, according to the National Hurricane Center the storm has a 50% chance to regain its status as a Tropical Cyclone. The downgrade of Dorian means a downgrade to natural gas. Call it the Dorian downgrade bonus. Earth Sky Science News reports "the storm has plenty of open water to traverse through before reaching any bodies of land. However, the general movement of the storm takes it near Puerto Rico, Dominican Republic, Haiti, and possibly into the Bahamas. The storm has been having trouble staying organized, as it fights wind shear and dry air. There is a high chance that this system will not hold together. Regardless, Dorian should still be watched."