|Analysis||Black gold market prices yesterday slipped slightly despite data from the world’s biggest crude consumer, the U.S. showing that the job market posted the lowest level of jobless workers filing for jobless benefits since July. As the job market showed a slight of improvement meant that demand on energy products will start improving therefore kept oil prices from falling too low as still there are worries in the market that the global recovery is taking place but at a slow pace. The contract slid $0.04 closing at $72.47 while recording a high of $73.16 per barrel and a low of $71.66 per barrel.|
The U.S. stock markets fell as a result of companies posting lower revenues that what markets were anticipating and this discouraged many investors from equity markets. Turning to oil share we see that Exxon Mobil fell 0.50 points or 0.71% to $69.84, Chevron Corp. declined 0.48 points or 0.66% to $71.97 while ConocoPhillips closed at $46.79.
The EIA report was released Wednesday showing that the U.S. commercial crude oil inventories decreased by 4.7 million barrels from the previous week. At 332.8 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 increased by 0.5 million barrels last week, and are near the upper limit of the average range. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories increased by 2.2 million barrels, and are above the upper boundary of the average range for this time of year.
Today, we see that oil prices are extending their decline as the worries continue in the markets regarding a global recovery especially in the U.S. Investors currently in the black gold market have their focus turned towards economic data from major economies as this will determine the trend oil prices will take and if they do see upbeat data they right away become attracted to markets, which supports a rise in the markets and vice versa when they step out of markets, meaning that funds flow out of, therefore weighing on oil prices heavily.
Oil prices in the long term we see them still pressured from the global recession although prices might temporarily rise like mentioned earlier from upbeat economic data yet will then again decline as the recession continues to ravage nations as we see a full global recovery not taking place anytime before next year.