Crude traded below $88 per barrel today as traders’ jitters simmer down regarding Egyptian protests negatively disrupting Middle East crude supplies, while API shows a rise in inventories as we await tomorrow’s vital EIA report.
Crude today hovers around $87 per barrel recording its highest around $87.66 and lowest around $87.16, while it currently is trading around $87.36 per barrel.
Recent political chaos in the Middle East played a major role in last week’s oil jump above $92 per barrel to record a 26-month high, where Egyptian protestors clashed against president Hosni Mubarak and his followers raising fears around the world regarding crude passing through the Suez Canal, vital transit point that ships oil and cargo to the world, could be impeded. On the other hand, crude supplies still remain unaffected by the political unrest as prices returned back below $90 per barrel.
Crude yesterday traded around $88 per barrel recording its highest around $89.51 and lowest around $87.16 per barrel, closing around $87.40 per barrel.
Moreover, our economic agenda supply data later on today highlighting the strength of demand on crude. Meanwhile, traders are anxious about the US Energy Department's EIA report tomorrow; supplies are expected to have risen 3 MB or 1.3% from 236.2 million last week.
As for NYMEX as of 05:05 EST; motor gasoline rose $0.30 recording $245.790 per gallon; heating is trading around $271.550 per gallon inclining $0.35; whereas natural gasoline shed $0.24 to record $4.094. In London, Brent futures gained $0.30 to record $99.550.