Overnight

Oil is the story that despite its ups and downs doesn't seem to go away. At least that 's the view of some, according to recent reports about OPEC members holding meeting next month where production cuts might be the main topic.

Such talk reportedly hiked U.S. oil prices nearly 3% overnight putting U.S. oil a $43.02 a barrel and coupled with what many are viewing at good news about China's consumer prices in July from a year earlier at 1.8%, the third straight month it's  shown weakness, will add pressure to the Bank of China to further ease monetary policy. The  1.8%is well below the 3%  government target.

The Nikkei 225 edged higher 0.11%, the Australian ASX 200 was flat, the Hang Seng Index dropped 0.38%, the Shanghai Composite remained flat and the Shenzhen Composite moved up slightly 0.28% In general it was a modest day trading as some investors wait to see what India's central bank will do with its monetary policy also.


In the currency market, the dollar remained relatively flat against a basket of currencies, trading at 96.467, compared with its last close at 96.401. The dollar index climbed from levels under 96.00 in the previous week.The Japanese yen remained weaker against the greenback, trading at 102.38 as of 10:48 a.m. HK/SIN, compared with levels below 101.5 last Wednesday, Reuters noted.

Getting back the to oil story, however, some feel $26 a barrel seen in Fedcruary won't be seen again for sometime. One reason is spending cuts by the big boys should impact production next year and OPEC's margin for increasing output grow slimmer.So another upturn in the price of oil might be in the wings.