|News||Crude rises throughout Asian trading above $77|
|Analysis||Crude contracts rose throughout the Asian session above $77 per barrel, supported by the dollar's depreciation versus majors and especially the euro, after the Greek financial minister said that “theirs is no actual need for” a bailout from the European Union to help them secure their record budget deficit.|
The dollar declined in the U.S session yesterday, after the statement made by the Greek financial minister helped improve confidence levels in markets, proving that their economy is able to surpass this problem. Meanwhile, investors are leaning more towards purchasing commodities as confidence prevailed; especially since we are awaiting more corporate earnings today and tomorrow from the US and Europe which are expected to be supportive of the positivity.
The improvement witnessed in the industrial sector, after the Empire Manufacturing for January advanced at the fastest pace in four months; the data boosted oil prices to record high levels at $77.65 per barrel. Today's economic agenda includes Production and the Housing data, which are expected to continue improving.
Meanwhile, the release of the EIA report has been postponed till Thursday, after the US on Monday celebrated President's Day, where expectations are still for weak demand on crude from the largest energy consumer in the world.
The S&P GSCI index closed yesterday at 511.70 after rising 16.11; whereas the RJ/CRB commodity index also recorded gains by 6.85 points to close at 274.77.
In NYMEX trading as of 02:30 EST; heating contracts fell to record $199.550 per gallon by $0.080; motor gasoline is trading around $199.260 per gallon after inclining by $0.440; whereas natural gas contracts followed by climbing $0.055 to record $5.365 per 1000 cubic feet. In London, Brent contracts gained $0.040 to record $75.720.
Crude opened today at $77.25 per barrel, recording their highest at $77.45 and lowest at $77.05 per barrel, where it is presently trading around $77.30 per barrel.