|News||The EIA report|
|Previous||0.6 million barrels|
|Forecast||1.4 million barrels|
|Analysis||Crude stabilized throughout morning trading today around $82 per barrel after the dollar's strong decline; therefore increasing investors' risk appetite to purchase commodities, specifically after OPEC signaled that it would be setting production target rates unchanged.|
The dollar versus the euro declined yesterday after Standard & Poor’s yesterday welcomed the austerity measures adopted by the Greek government affirming their long-term BBB+ credit rating and removing them from CreditWatch.
Meanwhile, expectations today regarding OPEC maintaining output at previous levels are increasing, where it will be decided today in the meeting held in Vienna. Furthermore, eleven of the organizations members stated that there is no need to adjust production rates, specifically after oil price stabilized above $80 per barrel.
The fed yesterday decided to stabilize the benchmark interest rate around zero levels of 0.0 – 0.25% for an additional period to support the U.S. economy, the largest energy consumer in the world. Meanwhile, in Japan the BOJ decided to stabilize the benchmark interest rate at 0.10%, and doubling their lending program to 20 billion yen to support the banking sector and the economic recovery while stave off deflationary pressures.
We expect a busy day today, with several fundamentals queued for release like the EIA report, which is expected to report a rise in inventories for the previous week by 0.6 million barrels compared to the previous buildup of 1.4 million barrels; thus, reflecting a constant incline in inventories and mirrors weak demand and consumption levels in the U.S, leaving negative effects on oil prices.
The S&P GSCI index closed yesterday at 527.22 after gaining by 1.65; whereas the RJ/CRB commodity index also recoded a gain of 2.75 to close at 273.54.
In NYMEX as of 03:55 EST; heating futures rose to $211.830 per gallon by $0.400; motor gasoline is trading around $229.240 per gallon after gaining by $1.740; natural gas also inclined by $0.007 to $4.354 per 1000 cubic feet. In London, Brent rose by $0.360 to record $80.890.
Crude opened today at $82.10 per barrel recording its highest at $82.35 and lowest at $81.70, and currently trading around $82.00 per barrel.