|Previous||-4.7 million barrels|
|Forecast||-1.4 million barrels|
|Analysis||October's oil contract expired yesterday; closing at $71.55 after it gained $1.84, as a result of the U.S. dollar plunging versus the euro to a one-year low and this meant that oil as an investment became cheap, as a result of commodities priced in dollars. In addition, oil prices were supported, as a result of Saudi Arabia, the biggest oil exporter, stating that the nation was recovering; thus, immediately attracting investors to oil markets, as they seek a potential in profits. The November contract gained $1.83 closing at $71.76, while recording a high of $72.03 per barrel and a low of $69.74 per barrel.|
The U.S. stocks closed in the green territory, as a result of optimism in the equity markets, regarding a global economic recovery, while there are increasing signs that the worst of this global recession is over. Turning to oil shares, we see that Exxon Mobil gained 0.26 points or 0.37% to $69.83; ConocoPhillips leaped 0.49 points or 1.06% to $46.64; while Chevron Corp. rose 0.58 points or 0.80% to $72.63.
As the American Petroleum Institute (API) released its oil inventories; showing that oil stockpiles rose 276,000 barrels, while markets were expecting a decline of 2.25 million barrels, weighed heavily on oil prices today, as it shows that demand remains weak in the U.S.; the world's biggest crude consumer. Today, the EIA report is scheduled to be released with expectations showing that oil inventories will decline 1.4 million barrels from the previous decline of 4.7 million barrels. Markets today, opened at $71.63 while recording a high of $71.81 per barrel and a low of $71.13 per barrel.
The attention in the markets today are on the EIA report, because this will determine the trend of oil prices, while in our opinion we see oil prices in the long term plummeting, as a result of the ongoing global recession that is weighing heavily on demand.