|Previous||-4.9 million barrels|
|Forecast||-1.7 million barrels|
|Analysis||Crude managed to close yesterday after a thing trading session, advancing slightly to end at $78.74 after opening trades at $78.59 per barrel. Numerous factors were behind this gain, yet we cannot forget the lower trading volume due to the holidays.|
The dollar was supported yesterday by figures showing that confidence levels haven risen, despite of it being lower than expectations, and thus spreading optimism throughout US markets. In addition, stock indices rose as well as the dollar which is measuring its strength against other currencies. The dollar index ended trades yesterday at 77.82 after opening at 77.63, recording its lowest at 77.31.
We see that the dollar index continued to rise throughout trades today, to trade around 77.90 after starting trades at 77.81.
Meanwhile, other factors had depressing some of the advance yesterday after five days of consecutive gains, was the US API data which, which showed that oil stockpiles rose by 1.725 million barrels throughout last week; thus, supporting the fact that there might be some weakness in demand levels on crude, which will be insured today after the release of the awaited EIA report.
Last week the EIA report showed that US crude stocks depleted by 4.9 million barrels, where expectations for this week are also for a drop by 1.7 million barrels. We expect crude to continue the upside move especially with falling distillate inventories amid rising winter demand; whereas if the figures are inline to yesterday’s report that showed a rise in stockpiles, it may negatively affect crude prices.
Crude is presently trading around $78.90 per barrel, where it started trading at $78.77 per barrel.