Fundamental Oil Report (2010-02-10)

By IBTimes Staff Reporter | February 10 2010 4:36 AM

NewsCrude prices below $74 on elevated stockpilesPreviousForecastAnalysisCrude contracts receded throughout the Asian session, with more expectations pointing to a constant rise in stockpile level in the US, top energy consumer in the world, with constant weakness in demand.The American Petroleum Institution (API) yesterday stated that crude stockpiles gained by 7.2 million barrels last week, the biggest incline since October last year; motor gasoline rose 1.6 million barrels, its highest since 1999, where this report reflects the fragility in demand levels on crude in the US.

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On the other hand, snow storms are dominating the US, pushing the EIA to postpone its weekly stockpile report until Friday, since the cold weather seems to be tightly gripping several regions crippling transportation and vital utility services and sectors.

Meanwhile, the rise witnessed in the API report increased expectations of higher stockpiles to be reported by the EIA, which was expected to report a rise of 1.4 million barrels; compared to the previous reading of 2.3 million barrels.

The S&P GSCI index closed trading yesterday at 490.15, rising by 9.45; whereas the RJ/CRB energy index followed and gained by 3.60 to close at 265.12.

In NYMEX trading as of 03:30 EST; future heating contracts fell back to record $192.780 per gallon by $0.950, while motor gasoline is trading around $192.120 per gallon after plunging by $0.780, whereas natural gas contracts ascended by $0.065 to record $5.355 per 1000 cubic feet. In London, Brent future contracts dropped by $0.530 to record $71.60.

Crude contracts opened today at $73.80, recording its highest at $73.80 and lowest at $73.15, while presently trading around $73.25 per barrel.