|Analysis||Oil rose today for the fifth day recording a new record for 2009 after breaching $75 levels. The incline was roiled by the dollar's weakness and bounce in Asian stocks.|
Yesterday, oil gained despite the tumble in U.S. stocks as OPEC upgraded its forecasts for 2010. The petroleum cartel mentioned that recovery in global economies is estimated to increase demand on oil by nearly 700,000 barrels per day, higher 200,000 barrels from the previous forecasts. The contract added $0.88 closing at $74.15, while recording a high of $74.55 per barrel and a low of $72.83 per barrel.
Prices today continued its rally as the U.S. dollar extended its losses against majors. The dollar index fell to the lowest level in 14 months and still continuing its downside fall. The dollar's slide boosted demand on commodities lifting gold to a new record and oil to highest level this year.
With regard to equities, Asian shares climbed today drive by better-than expected trade report from China where exports show progress. The MSCI Asia Pacific Index jumped to 13-month. Optimism in markets o signs of global recovery is enhancing shares and damping demand on refuges.
This week, large U.S. companies will release their earnings with expectations to show improvement. The previous day Intel released its earnings surpassing analyst's forecasts.
Moreover, API report is due later on today, while the EIA report will be released tomorrow as they were postponed due to Columbus Holiday in the U.S. These reports are anticipated to provide clearer picture for energy demand in the world's largest crude consumer.