NewsCrude contracts drop prior to the release of the EIA report
Previous4.1 million barrels
Forecast9.1 million barrels
AnalysisCrude future contracts dropped throughout morning trading for the second consecutive day before the expected release of the EIA report, which is predicted to report higher stockpiles in the US.

The API yesterday stated that stockpiles rose by 6.5 million barrels last week, the sixth consecutive weekly rise in stockpiles, therefore insuring weak US demand levels.

The EIA report which will be released today at 10:30 EST is shadowed by further expectations for a rise in stockpile by 1.9 million barrels; compared to the previous week’s buildup of 4.1 million barrels.

Meanwhile, Saudi Arabia the largest oil producer in the world, said yesterday that they have reserves equivalent to 4.0 million barrels per day, which are expected to support the market when global consumption levels improve.

Presently, attention is set on the OPEC meeting scheduled to begin on the March 17, in Vienna to follow up on current policies, specifically after the agency maintained the quota for the past four meetings.

The S&P GSCI index closed yesterday at 525.38 rising by 0.22; whereas the RJ/CRB commodity index declined by 1.92 to close at 274.79.

IN NYMEX as of 04:30 EST; heating oil futures rose to record $209.600 per gallon by $0.620; motor gasoline is trading around $224.100 per gallon after climbing by $1.070; whereas natural gasoline declined by $0.002 to record $4.514 per 1000 cubic feet. In London, Brent ascended by $0.160 to record $80.070.

Crude opened today at $81.30 per barrel recording its highest at $81.60 and lowest at $81.00 per barrel, where it is currently trading around $81.45 per barrel.