NewsEIA Report
Previous2.8 million barrels
Forecast0.6 million barrels
AnalysisYesterday, black gold market prices dipped as a result of the U.S. economy releasing its consumer confidence showing that it fell and this right away filled the markets with worries that an economic recovery in the nation will take longer to happen, and as the U.S. economy is known as the world's biggest crude consumer, investors eye their economic data carefully. Based on the worries in the markets caused some investors to leave oil markets which led the oil contract to shed a slight $0.13 closing at $66.71 while recording a high of $67.33 per barrel and a low of $65.82 per barrel.

 

The U.S. stock market closed in the red zone despite home prices rising the most in four years as consumer confidence declined which caused pessimism in the stock markets. Turning to oil shares we see that Exxon Mobil slipped 0.52 points or 0.74% to $69.07, ConocoPhillips declined 0.47 points or 1.02% to $45.22 while Chevron Corp. fell 0.79 points or 1.10% to $70.91.

 

The EIA report is scheduled to released today with expectations showing that U.S. oil inventories are to climb 600,000 barrels while distillates and gasoline stockpiles are to rise 1.2 million barrels and 1.0 million barrels respectively. Although projections are that oil demand is still weak, we see that oil prices today are rising as the dollar is weakening versus major currencies. Since commodities are priced in dollars, and as the dollar falls, oil becomes cheap for investors as an investment therefore supporting oil prices. The markets today opened at $66.71 while recording a high of $67.40 per barrel and a low of $66.45 per barrel.

 

Our expectations for oil markets remain the same as we still see oil prices in the long run decline as a result of the global recession which will take some time to end. In the short term they might slightly rise from any upbeat economic data but the overall oil markets are pressured from the economic deteriorations.