WTI crude oil price lost -1.6% to settle at 69.45. Both the US Energy Department and OPEC released their monthly reports and suggested that demand outlook remained weak. Although price recovered slightly after the industry-sponsored API reported decline in crude inventory last week, the market still needs to wait for US' Energy Department's data today. Heating oil slid -0.8% and natural gas lost -1.4%. On the other hand gasoline added +0.7% to 2.04.

In OPEC's August report, the organization controlling the world's 40% oil production forecast world oil demand growth in 2009 will decline -1.6M bpd, unchanged from the projection last month. In 2010, demand should grow by +0.5M bpd, also same as July's forecast. Concerning supply, the cartel believed non-OPEC supply will increase by about +0.4M bpd while there's not much room for OPEC production to increase.

EIA forecast global oil consumption will decline by +1.7M bpd in 2009, compared with -1.6M bpd in July's forecast. In 2010, consumption will increase +0.94M bpd, compared with +0.9M bpd projected last month.

API's data indicated crude oil inventory declined -1.42 mmb, better than consensus of a 0.75 mmb gain, to 348.5 mmb in the week ended August 7 as refinery runs dropped. Cushing stocks also fell -0.5 mmb. Gasoline stockpile also drew -2.26 mmb to 213.4 mmb during the week as both imports and refinery output declined. Demand was largely unchanged from the prior week. The weakness link remained in distillate whose inventory level rose +1.6 mmb as demand plummeted sharply.

Analysts forecast that the US Energy Department will report +1 mmb increase in crude oil inventory. For gasoline and distillate, stock levels probably drew -1.3 mmb and -0.1 mmb, respectively.

Commodity prices were pressured after the Chinese Government reported a set of worse-than-expected economic data in July. Base metals got the biggest hit with LME lead and nickel plunging more than -3%. LME aluminum and copper also dropped -2% and -1.6%, respectively.

In July, growth in fixed asset investments declined to +30% from +35% in the previous month. The major contributor to the deceleration was the weaker industrial sector whose growth dropped to +23% in July, from +29% in June and +32% in May. Other data such as new lending and new project starts also showed fatigues after reaching peaks in 2Q09.

The precious metal complex made little change Tuesday. The gold futures gained +0.1% to close at 947.6 while silver slid -0.1% to 14.35. Traders are waiting for the FOMC meeting in NY session today as the Fed's tone regarding monetary policy and economic outlook should have great impact on USD and stock market movement. Hence, gold's outlook will also be affected.