|Previous||1.0 million barrels|
|Forecast||-0.4 million barrels|
|Analysis||Oil steadied today near $78 a barrel, ahead of the EIA report and after yesterday's gains.|
Crude prices advanced the previous day on optimism after Dubai World concerns eased; upbeat manufacturing data in China, political tensions in Iran, and the loose dollar have overshadowed the impact of American Petroleum Institute (API) report.
The API report, released on Tuesday, has shown that crude inventories surged 2.89 million barrel the prior week, distillate stocks soared 1.1 million barrels, and gasoline stocks rose 3.4 million barrels. However, the direction will be detected after the release of the EIA report, which is due later on today.
Today, prices are steady in a day that lacks important fundamentals from major economies. Meanwhile, there is confidence in markets after discussions in Dubai concerning the rescheduling of debts, which lifted stocks to a record high. Dow Jones closed yesterday at its highest in 14 months; while the MSCI Asia Pacific Index edged up to six-week high; where Nikkei index closed at its highest in two weeks, boosted by commodities companies as gold and oil incline.
Moreover, the U.S. dollar slightly changed close to 16-month low versus a basket of major currencies, as indicated by the dollar index which is currently at 74.40 compared with yesterday's closing at 74.43. Optimism sapped demand on lower-yielding assets, giving commodities the chance to rise to a record high, such as gold that rocketed to a high of $1217.00 an ounce earlier on Wednesday.
Oil is currently traded at $78.15 recording a high of $78.57 and a low of $77.80; whereas the contract on Tuesday added $1.09 closing at $78.37, while recording a high of $79.04 per barrel and a low of $75.13 per barrel.