|Previous||-0.4 million barrels|
|Forecast||0.8 million barrels|
|Analysis||Oil prices yesterday climbed as OPEC which produces nearly 35% of the world's oil supplies stated that world oil consumption in 2010 would be higher than projected earlier while stating that China's nation is improving. OPEC is usually one of the major movers in markets, while China is watched since it is the second biggest oil consumer in the world following the United States, based on the upbeat statements, boosted oil market prices as investors were attracted to enter markets to seek profits. The oil contract gained $0.23 closing at $79.28 while recording a high of $80.10 per barrel and a low of $78.57 per barrel. |
The U.S. stock market closed in the green territory following the rise in European stocks as a result of upbeat bank earnings while in the U.S. economy, Feds assured that interest rates will not be hiked for quite some time. Looking at oil shares, we see that Exxon Mobil inclined 0.30 points or 0.41% to $72.91 as Chevron Corp. gained 0.17 points or 0.21% to $78.51 while ConocoPhillips dipped 0.42 points or 0.78% to $53.16.
Today, oil prices are steady as the dollar remained trading close to a 15-month low versus major currencies while investors are today waiting for the release of the EIA, delayed a day as a result of the Veteran's Day Holiday. The U.S. oil inventories report is forecasted that supplies increased 600,000, and this meant that demand was weak in the number one oil consumer. The markets opened at $79.25 while recording a high of $79.69 per barrel and a low of $79.03 per barrel.
The volatility in the oil markets gives us evidence that investors are confused about the exact trend oil prices are taking while they continue to watch economic data released from major economies. From our point of view, we see prices in the long term plummet led from the crippled demand and global recession that is weighing on oil prices.