|Previous||-5.9 Million Barrels|
|Forecast||-2.6 Million Barrels|
|Analysis||Oil prices climbed on Tuesday as OPEC, the oil producer that produces nearly 35% of the world's crude oil said that although oil demand this year was going to be weak, it was going to recover next year as a global recovery takes place. This encouraged investors to enter oil markets which supported the rise in prices as funds flew in the markets despite OPEC also estimating that demand this year on crude oil was weak. The contract gained $2.07 closing at $70.93 while recording a high of $71.19 per barrel and a low of $68.48 per barrel.|
U.S. stock markets climbed yesterday after optimism filled the markets after Federal Reserve Bank Chairman Ben Bernanke said that the worst of this global recession has come to an end. Alongside the positive talks, lately economic data has been upbeat in the economy which supported stock markets as a whole. Turning to oil shares we see that Exxon Mobil dipped 0.51 points or 0.72% to $69.49, ConocoPhillips slipped 0.26 points or 0.55% to $46.33 while Chevron Corp rose 0.59 points or 0.83% to $71.63.
Today, oil prices fell slightly as once again fear approached the markets regarding oil demand crippled especially as the American Petroleum Institute released its oil stocks showing that they rose 631,000 barrels therefore hinting that demand in the world's biggest crude consumer is weak. The focus in the oil markets today is on the EIA report in which expectations show that crude oil inventories in the U.S. will decline 2.6 million barrels from the prior decline of 5.9 million barrels. The markets today opened at $70.40 while recording a high of $70.79 per barrel and a low of $70.14 per barrel.
Once again as we saw oil prices spike yesterday, they are still held back from the global recession that is weighing on energy products which will keep prices to the downside in the long term yet might temporarily rise like we saw yesterday as a result of upbeat data from major economies.