Crude prices remain on plummeting as the global economic healing from the ongoing downside pressures is taking place at a tremendously gradual slow pace, mainly in the major economies and the top oil consumer countries, predicting therefore that the demand on oil will require a long time to fully recover, knowing that the U.S. economy contracted by 1.0%, which is actually inline with the prior reported contraction in the advanced estimate.
Furthermore, the major reason behind the plummeting of the crude prices is yesterday's EIA report that showed that the U.S. commercial crude oil inventories unexpectedly increased by 0.2 million barrels from the previous week where the inventories dropped considerably by 8.4 million of barrels, illustrating clearly that the demand on energy within the top oil consumer country remains deteriorated despite slight enhancement.
In fact, 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.
Whereas, 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. As a result crude prices are so far trading around $71.36 a barrel recording a high of $71.68 per barrel and a low of $69.93 per barrel.