|News||Global optimism supports crude prices|
|Previous||-3.9 million barrels|
|Forecast||0.4 million barrels|
After the set back oil prices witnessed throughout the trading session in Asia yesterday, crude returned to record strong gains especially with expectations for a rise in demand.
The dollar dropped throughout the last three days providing support for oil prices, the dollar declined due to correctional movement in addition to improving risk appetite which supported investors’ demand for higher yielding assets.
The dollar index ended trading yesterday at 78.99 after opening at 79.17, specifically at a time we see it continuing to fall throughout today's trading session around 78.88, after opening at 78.98.
Furthermore, growth figures from the U.S on Friday beat expectations, where it played a major role in lifting oil prices, especially since the US economy is considered to be the largest in the world, alongside the cold weather conditions which might support rising demand levels on crude.
Crude continued rising today, where it opened trading at $76.96 per barrel and currently trading around $77.67 per barrel.
The release of weekly report for the Institution of National Petroleum yesterday, showed a drop in stockpiles by 1.2 million barrels, at a time distillate fuel receded by a million barrels; thus, adding further supporting factors on oil prices.
Meanwhile, expectations for the EIA’s weekly report awaited today, shows that volatility persists in demand levels on oil, specifically since they point to a rise in stockpiles by 400 thousand barrels after declining last week by 3.9 million barrels.