|Previous||0.8 million barrels|
|Forecast||1.7 million barrels|
|Analysis||Oil inclined slightly today above $79 a barrel after yesterday's rise ahead of the release of the Energy Information Administration report.|
Yesterday, crude prices gained more than 1.8% on optimism after the release of U.S. factory orders which came better than expectations and as the U.S. dollar stopped its rally.
Factory orders rose in September to 0.9% from -0.8% a month earlier and 0.8% expectations, providing hopes that the world's largest crude consumer is recovering. U.S. Non-manufacturing and ADP employment are due later on today and are supposed to give clearer picture with regard other sectors and labor market. The upbeat news offset concerns with regard banks after bank of Scotland and Lloyds banking Group mentioned that they will get bailout from the government.
After the U.S. data, stocks rose and Asian equities followed its suit on better-than-estimated earnings by Asian companies. Equities' bounced gave a boost to oil; however, the incline was supported by the dollar's fall.
The dollar index, which tracks the dollar movements versus a basket of major currencies, slipped the previous day from the high of 76.81 to close at 76.28. Today, the index is continuing its decline to 76.22, lifting commodities, especially gold which jumped to a new high of $1087.70 an ounce. Commodity indices surged on Tuesday; where S&P GSCI added 6.62 points to 510.25 and RJ/CRB Commodity edged up 2.99 points to 276.49.
Moreover, the American Petroleum Institute report released on Tuesday showed that U.S. gasoline stocks soared by 501,000 barrels last week; distillate supplies rose by 1.8 million barrel; and commercial crude oil stocks slumped 3.3 million barrels. However, prices were not impacted by the API figures, but things may change after the release of the EIA report which is due later in the day.
Now, oil is traded at $79.50 recording a high of $79.65 and a low of $79.10, whereas the contract a day ago picked up $1.13 closing at $78.13, while recording a high of $78.66 per barrel and a low of $76.56 per barrel.