Fundamental Oil Report (2010-03-01)

By IBTimes Staff Reporter | March 01 2010 4:06 AM

NewsCrude starts March trading with an upside bias on U.S growthPreviousForecastAnalysisCrude starting a new week and a new month on the rise, supported by US data reported an upside GDP revision as the economy expanded in the past quarter at the fastest pace in six years. The recovery is undergoing in the largest economy and supporting by that the outlook for demand on commodities and oil.

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Crude contracts gained by 1.9% on Friday, following the GDP revision to 5.9%, where these results are inline with Bernanke's statements last week, regarding the US economy’s continued recovery.

Meanwhile, crude prices were supported after Saudi, which is considered to be the primary exporter, has agreed to increase its supply to India, which confirmed growing demand from emerging nations in the Pacific, as India is building three new oil refineries.

On Friday, S&P GSCI index closed at 517.48 after recording a rise of 8.97; whereas the RJ/CRB commodity index followed to rise by 3.90 closing at 274.77.

In NYMEX trading as of 03:00 EST; heating oil futures rose to record $204.670 per gallon by $1.140; motor gasoline is trading around $219.610 per gallon after rising by $0.820; whereas natural gas contracts receded by $0.0460 to record $4.767 per 1000 cubic feet. In London, Brent contracts rose by $0.230 to record $77.820.

Crude opened today at $79.700 per barrel recording its highest at $80.60 and lowest at $79.65 per barrel, while currently trading around $80.10 per barrel.