|News||The EIA Report|
|Previous||3.0 million barrels|
|Forecast||1.4 million barrels|
|Analysis||Crude traded this morning near $80.00 per barrel as optimism dominated financial markets, as the Greek dilemma unravels and distillate stockpiles drop in the largest energy consumer in the world.|
Crude rose to end higher by 1.3% recording $80.90 per barrel its highest since 15 months, supported by rising equity indices' with increasing expectations by investors regarding the European Union offering the Greek economy a rescue plan at a time where it is preparing for additional cuts that target reducing the budget deficit.
The release of the API report yesterday revealed a rise in crude stockpiles by 2.67 million barrels throughout last week. Meanwhile, distillate fuel stockpiles that include heating dropped by 4.07 million barrels, supporting oil prices throughout the late session to close around $79.60 per barrel.
We await the release of the EIA report today, where it is expected to show a rise in stockpiles by 1.4 million barrels; compared to the previous buildup of 3.0, thus reflecting the ongoing fragility in demand levels in the US.
The dollar's decline against the euro seen in the past two days has reinforced investors' ability to purchase high risk commodities, supported by improving confidence in financial markets; the euro against the dollar is currently trading around 1.3620, compared to the low levels reached by the pair last week around 1.3450.
The S&P GSCI index closed yesterday at 518.57 rising by 5.83; whereas the RJ/CRB commodity index also recorded gains of 0.44 to close at 275.13.
In NYMEX as of 03:30 EST; heating contracts appreciated by $205.900 per gallon for $0.290; motor gasoline is trading around $219.690 per gallon after climbing $0.030; whereas natural gas contracts followed and rose by $0.030 to record $4.738 per 1000 cubic feet. In London, Brent rose by $0.020 recording $78.20.
Crude opened today at $79.80 to record its highest at $80.90 and lowest at $78.00 per barrel, while currently trading around $79.60 per barrel.