|Previous||-3.8 million barrels|
|Forecast||-2.1 million barrels|
|Analysis||Oil little changed on Wednesday, after breaking the longest stretch of decline yesterday, as U.S. industrial production data offset the rise in inventories.Crude oil closed above $70 a barrel on Tuesday after the release of U.S. industrial output for November which rose to 0.8% from 0.0%, while capacity utilization surged to 71.3% from 70.6%. The data suggest improvement in demand on energy in the world's largest crude consumer. Investors today will scrutinize housing reports and the rate decision by the FOMC.|
Yesterday's days rebound stopped the nine-straight days of fall which are the strongest drop since 2001. The American Petroleum Institute (API) report released yesterday showed that crude inventories soared 924,000 barrels to 332.5 million; gasoline stocks jumped 2.07 million barrels to 217 million; and distillate fuels dropped 3.16 million barrels to 165.8 million barrels.
Tomorrow, the EIA weekly report will be due and it may show a rise in inventories for the second week if it came in line with API report which may put downside pressure on prices again.
In the stock markets, U.S. equities sagged last night due to financial concerns, while Asian shares fluctuate today, whereas in the currency markets the firm U.S. dollar is still continuing its advance against majors, boosted by yesterday's upbeat U.S. data. The dollar index is currently at 76.94 compared with the day's opening at 76.91.
Oil is currently traded at $70.75 recording a high of $70.95 and a low of $70.57, whereas the contract on Tuesday edged up $0.18 closing at $70.69, while recording a high of $71.15 per barrel and a low of $69.31 per barrel.
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