|News||Crude trading around $78 per barrel this morning|
|Analysis||Crude traded today around $78 per barrel awaiting US data that with expectations for stable recovery prevailing in the world's largest economy throughout that previous quarter;increasing positivity regarding oil demand, specifically since it is considered to be a primary substance in most industries.|
Reports released yesterday showed that OPEC (Organization of Petroleum Exporting Countries) production rose by 125,000 per barrel daily, or by 0.4% to range 27.17 million barrels daily; which is the highest since December 2008. Meanwhile, the quota remained at 24.845 million barrels daily and there have not been any adjustments since December of last year, when OPEC decided to raise it by 4.2 million barrels through the worst economic recession since WWII. Leaders of the organization are expected to meet on March 17th in Vienna.
Most oil trading was centered in the last six months around $70 – 80 per barrel, in hopes that the major economies can completely recover from the recession that support demand on crude. This mainly applied on China, which is expected to the country to guide the recovery for the global economy.
The cold weather dominating several parts of the globe could not support oil demand levels, specifically heating fuel, according to the EIA weekly reports that had showed noticeable buildup in crude stockpiles in the past four weeks; insuring fragile consumption levels from the largest energy consumer in the world.
Crude trading this morning supported the dollar's weakness, where the euro against the dollar recorded levels near 1.3570 compared to low levels it recorded throughout this week at 1.3440. Meanwhile, investors are leaning more towards commodities as the dollar weakens, due to improving confidence levels in markets.
The S&P GSCI index closed trading yesterday at 508.50 down by 10.25 points; whereas the RJ/CRB commodity index recorded a drop by 3.87 to close at 270.87.
In NYMEX trading as of 03:45 EST; heating contracts recorded a decline to $198.250 per gallon by $0.370; motor gasoline is trading around $204.240 per gallon after rising $0.540; whereas natural gas contracts also appreciated by $0.048 to record $4.815 per 1000 cubic feet. In London, Brent plunged by $0.0140 to record $76.150.
Crude opened today at $78.30 per barrel, recording a high of $78.65 and low of $77.82 per barrel, currently trading around $78.12 per barrel.