|Previous||1.3 million barrels|
|Forecast||1.6 million barrels|
|Analysis||Crude oil lingered on Wednesday above $79 a barrel ahead of the release of the EIA report later on today. Prices yesterday gained after the release of the API report which showed that U.S. crude stockpiles slipped 1% to 339.5 million the previous week.|
Meanwhile, there are concerns that the recovery may be slow after the volatility in data released in major economies. GDP released last in the U.K. missed analyst's expectations causing disappointment after the recovery signs witnessed. Yesterday, U.S. consumer confidence dropped. On the other hand, stock's rally halted after the previous progress seen.
U.S. equities slumped after the release of the grim consumer confidence report. Asian stocks followed the U.S. suit, dragging the MSCI Asia Pacific Index to its lowest level in 3 weeks, while Nikkei closed at its lowest level in 2 weeks. Eyes this week are on the U.S. GDP for the third quarter which will be due tomorrow as it will determine the strength of the recovery.
In the currency market, the dollar inclined for the third day yesterday, rebounding from its lowest level in 14 months. The dollar did an upside correction, but it declined today against a basket of major currencies as seen by the dollar index which plunged to 76.00 compared with the opening at 76.13. The rising concerns spurred demand on lower-yielding currencies which enhanced the yen today.
Now, oil is traded at $79.32 recording a high of $79.77 and a low of $79.22, whereas the contract on Tuesday added $0.87 closing at $79.55, while recording a high of $79.89 per barrel and a low of $77.81 per barrel.