|Previous||2.1 million barrels|
|Forecast||0.7 million barrels|
|Analysis||Oil prices inclined slightly today after falling for 5 consecutive sessions, following the American Petroleum Institute report which showed that U.S. supplies fell last week.|
Crude prices increased above $73 a barrel on Wednesday after losing more than 6.5% in the previous sessions as the API report released yesterday showed that crude inventories dropped 5.8 million barrels, gasoline inventories edged down 753,000 barrels, while distillates soared 1 million barrels. The report provided evidence that demand on energy in the world's top crude consumer is improving ahead of the release of the EIA report later on today.
Another important factor that helped oil prices to rebound is the dollar's decline as indicated by the dollar index which plunged to 76.06 compared with the day's opening at 76.21. The greenback stopped its 5-day rally today, doing a downside correction, giving the chance for commodities to surge again. Concerns in markets after Moody's and Greece's downgrade the previous day along with the Dubai world debt woes are boosting demand on dollar and yen as refuges.
U.S. stocks slipped last night and Asian stocks trailed it today with Nikkei closing at 1.3% decline after the yen's appreciation and fears after the new stimulus announced in Japan which gave a clue that second-largest economy in the world is still suffering, especially as GDP for the third quarter showed a slow down.
Oil is currently traded at $73.50 recording a high of $73.57 and a low of $72.82, whereas the contract on Tuesday shed $1.31 closing at $72.62, while recording a high of $74.39 per barrel and a low of $72.51 per barrel.