The API reported that oil stockpiles have dropped by 3.14 million barrels throughout last week, where the plunge came better than expectations, despite of expectations today for higher stockpiles by 1.8 million barrels according to EIA; after the previous week’s 3.1 million barrels buildup which is to be announced later on today.
The dollar retreated against the euro, due to increasing expectations that Bernanke will signal today that the Feds likely hold the benchmark interest rate at zero levels to support growth levels.
Today, we await Mr. Bernanke's testimony to the U.S. Congress, where he is expected to say that the raised discount rates last week was not meant to increase borrowing costs. This could possibly push the dollar to plunge and therefore supporting demand on oil.
Meanwhile, confidence levels dropped in the U.S. and Germany and negatively affecting stock markets that had plummeted yesterday; thus, pushing crude prices to retreat and record $78.22 per barrel, compared to its highest levels at $80.35 per barrel.
The S&P GSCI index closed yesterday at 513.25 after dropping by 9.14; whereas the RJ/CRB commodity index dropped by 4.38 to close at 272.40.
In NYMEX as of 02:45 EST; heating future contracts advanced to $203.870 per gallon by $0.0640; motor gasoline is trading around $206.79 per gallon rising $0.230; whereas natural was lightly changed at $4.779 per 1000 cubic feet. In London, Brent dropped by $0.010 to record $77.240.
Crude contracts opened today at $79.10 per barrel, recording its highest at $79.30 and lowest at $78.82 per barrel, currently trading around $79.00 per barrel.