Investors should be bearish on oil, according to Ed Morse, Citi Research's head of global commodities.
A range of countries have been able to grow their oil production, he said. Meanwhile, he said demand likely won't keep up."We can't underestimate what's happening on supply."Business surveys from two Federal Reserve district showed activity remained sluggish in August.turned in a reading of -7 for the month. That was up slightly from the -9 in July and the Dow Jones estimate for -10.
Separately, the Chicago Fed's Survey of Economic Conditions turned in a reading of -23, which was better than July's -31. The reading is not a straight diffusion index like Richmond's, but the level suggests"that economic growth was below trend," the central bank said in an accompanying narrative.Home sales declined at a faster pace than expected in July as prices pushed higher,Existing sales dropped 2.2% from June, against the Dow Jones estimate for a 0.2% decline.
The median sales price increased 1.9% to $406,700, while unsold existing homes rose 3.7% from June to the equivalent of 3.3 months of supply.