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AnalysisThe U.S. markets were closed yesterday as a result of the Thanksgiving Holiday yet we saw oil prices plummet heavily as worries are back in the markets regarding the pace of global recovery, while a slower economic recovery means that demand on oil prices is dampened. As the global stock markets plummeted heavily especially after Dubai World, a government-owned company said that it is going to delay debt, aroused fears in the markets which were all reasons that oil prices declined. The contract shed $3.20 closing at $74.59 while recording a high of $77.91 per barrel and a low of $76.06 per barrel. 

Reminding you of the EIA report that was released Wednesday, which showed that U.S. commercial crude oil inventories increased by 1.0 million barrels from the previous week. At 337.8 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year. Total motor gasoline inventories increased by 1.0 million barrels last week, and are slightly above the upper limit of the average range. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories decreased by 0.5 million barrels, and are above the upper boundary of the average range for this time of year.    

As the U.S. stock markets were closed yesterday, we saw that on the Wednesday they climbed as a result of new home sales surpassing expectations which increased risk appetite in markets, turning to oil shares that same day we saw that Exxon Mobil gain 0.50 points or 0.65% to $76.41, ConocoPhillips rose 0.22 points or 0.41% to $52.90 while Chevron Corp. climbed 0.61 points or 0.77% to $79.64.   

Today, oil prices extend their decline as investors are fleeing black gold markets in fears that prices will continue to dip as a result of a weaker global recovery, as funds flow out of the markets cause prices to slip heavily. The focus in the oil markets now is on Dubai World wanting to delay paying back its debt for another six-months. The markets today opened at $77.33 while recording a high of $77.50 per barrel and a low of $74.49 per barrel so far. 

Dear reader, our perspective today has been supported as oil prices plummet as a result of the ongoing global recession despite any temporarily rise we have been seeing lately, as the main focus in the oil markets is on the economic recovery of the world, and as long as the recession remains, will continue to weigh on oil prices.