Yesterday, oil prices extended their gains as a result of the U.S. economy releasing its EIA report showing that the U.S. oil inventories fell more than projected and this hinted that despite the recession oil demand is recovering, investors eye the U.S. economy since itâ€™s the world's biggest crude consumer.
Prices also were supported from OPEC leaving their production steady in their meeting yesterday in Vienna while the dollar weakened therefore encouraged more investors to turn to oil since now it is cheaper for them as an investment especially since it's priced in dollars. The contract gained $0.63 closing at $71.94 while recording a high of $72.44 per barrel and a low of $70.86 per barrel.
The EIA report was released yesterday showing that the U.S. commercial crude oil inventories decreased by 5.9 million barrels from the previous week. At 337.5 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 increased by 2.1 million barrels last week, and are near the upper limit of the average range. Gasoline inventories remained unchanged while blending components increased last week. Distillate fuel inventories increased by 2.0 million barrels, and are above the upper boundary of the average range for this time of year.
The U.S. stock market climbed once again led from the International Energy Agency (IEA) projecting that oil consumption this year and 2010 will climb from the prior forecasts while jobless claims in the U.S. fell to the weakest level since July. Turning to oil shares, we see that Exxon Mobil gained 0.15 points or 0.21% to $70.65, ConocoPhillips rose 0.55 points or 1.20% to $46.38 while Chevron Corp. leaped 1.12 points or 1.59% to $71.45.
Black gold market prices today extend their gains as a result of the optimism in markets that oil demand is improving which therefore is increasing the appeal of oil as an investment as traders seek a potential in profits while my dear reader, we still believe that oil prices in the long run are pressured from the global recession despite this temporarily rise we are seeing. Today the markets opened at $72.05 while recording a high of $72.38 per barrel and a low of $71.77 per barrel.