|Analysis||Oil prices gained slightly as they were pressured from the data released from the U.S. economy especially as data was released regarding the manufacturing sector lower than projected while jobless claims rose meaning that the job sector continues to weaken. Investors eye the U.S. economy carefully since it is considered the biggest crude consumer. The contract inclined $0.21 closing at $70.82 while recording a high of $71.39 per barrel and a low of $69.13 per barrel.|
The U.S. stock market extended its decline as markets yesterday were disappointed from the economic data which caused pessimism in the markets therefore causing investors to avoid higher yielding assets. Turning to oil shares we see that Exxon Mobil dipped 1.34 points or 1.95% to $67.27, Chevron Corp. declined 1.62 points or 2.30% to $68.81 while ConocoPhillips leaped 0.34 points or 0.75% to $45.50.
The EIA report was released Wednesday showing that the U.S. commercial crude oil inventories increased by 2.8 million barrels from the previous week. At 338.4 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 decreased by 1.6 million barrels last week, and are above the upper limit of the average range. Finished gasoline inventories increased while blending components inventories decreased last week. Distillate fuel inventories increased by 0.3 million barrels, and are above the upper boundary of the average range for this time of year.
Today prices are declining despite the U.S. economy scheduled to release its jobs report showing that less employees will be laid off than the prior month and this should have boosted oil prices yet we see the opposite of this happening. There are now worries in the markets that the global economic recovery is taking longer to happen. The markets today opened at $70.35 while recording a high of $70.69 per barrel and a low of $69.70 per barrel.
Once again dear reader, we see that prices in the long term are pressured from the global downswing as this means that prices will continue to tumble from the crippled demand on oil markets while might temporarily rise in the short term if nations release any upbeat data regarding an economic recovery.