Yesterday, oil prices rebounded as a result of the dollar depreciating versus major currencies; this meant that commodities became cheaper for investors, which increased the appeal of crude oil as investors entered markets, while funds flew in to boost oil market prices. The contract gained $1.06 closing at $72.49, while recording a high of $72.95 per barrel and a low of $69.83 per barrel.
The U.S. stocks ended the day in green territory, as a result of crude and natural gas prices, therefore causing raw-material producer company stocks to rise, which supported the whole stock markets to rise. Looking at oil shares we see that Exxon Mobil fell 0.51 points or 0.71% to $70.86; Chevron Corp. slipped 0.09 points or 0.12% to $71.00; while, ConocoPhillips rose 0.14 points or 0.30% to $45.73.
Reminding you of the EIA report that was released Wednesday, we saw that the U.S. commercial crude oil inventories increased by 0.2 million barrels from the previous week. At 343.8 million barrels; U.S. crude oil inventories are above the upper boundary of the average range for this time of year. Total motor gasoline inventories decreased by 1.7 million barrels last week, and are in the upper half of the average range. Finished gasoline inventories increased, while gasoline blending components decreased last week. Distillate fuel inventories increased by 0.8 million barrels, and are above the upper boundary of the average range for this time of year.
Black gold market prices are extending their incline today, as a result of optimism returning to markets, where the world's biggest crude consumer; the U.S., is somewhat recovering. Anticipations in markets mean that demand in the long run would start improving, as companies' production begin to normalize, meaning that energy products would start to be demanded; based on these hopes, more investors are attracted to oil markets boosting prices. Today, the markets opened at $72.86, while recording a high of $73.03 per barrel and a low of $72.49 per barrel.
As we witness oil prices climb, in our point of view, this rise is only in the short term, since in the long term; prices are expected to decline, as a result of the ongoing global recession weighing on oil demand, which will hold prices back from rising.