Fundamental Oil Report (2010-03-09)

 @ibtimes on March 09 2010 4:29 AM

NewsCrude is trading below $82 on dollar’s strengthPreviousForecastAnalysisCrude this morning traded below $82 per barrel affected by the dollar’s strength. Confidence levels in financial markets declined on fears of rising stockpile levels in the US, which is considered to be the first energy consumer in the world.

Crude declined today amid profit-taking after the gain it witnessed throughout the past three days, recording the highest since January of $82.40, as the fear prevailed over weak demand in the US; therefore reducing demand on commodities.

Crude contracts have ascended since the beginning of this current year by 18% from $69 per barrel, supported by improvements witnessed across the global economy. Meanwhile, investors seem to need tangible proof to insure that oil demand levels have in fact improved, specifically at a time where focus is on the EIA report that still insures high stockpiles.

The S&P GSCI index closed yesterday at 527.74 rising by 1.40; whereas the RJ/CRB commodity index recorded a drop by 0.22 to close at 276.71.

In NYMEX as of 03:15 EST; heating oil futures dropped to record $209.590 per gallon by $0.960; motor gasoline is trading around $227.190 per gallon after gaining by $1.730; natural gasoline also inclined by $0.003 to record $4.560 per 1000 cubic feet. In London, Brent future contracts fell $0.490 to record $79.980.

Crude opened today at $81.70 per barrel recording its highest at $81.75 and lowest at $81.22 per barrel, while currently trading around $81.30 per barrel.

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