The dollar gained against the euro after weakened hopes regarding the EU bailout for Greece, specifically after statements made by German Chancellor, Angela Merkel, suggesting the IMF as the next stop for Greece to get support. The comments shivered confidence levels in markets and pushed investors to refrain from purchasing commodities.
In addition, the release of the weekly EIA report yesterday showed an incline in crude inventories by 1.0 million barrels, compared to the previous reading of 1.4 million barrels, but higher than expectations of 0.6 where it is currently at 344.0 million barrels above the medium term average range for this time of year. Meanwhile, motor gasoline inventories dropped by 1.7 million barrels last week and distillate fuel that include heating declined by 1.5 million barrels; yet both are still above the medium term average range for this time of year.
The EIA insured yesterday that demand levels have fell back by 4.2% at 18.8 million barrels per day throughout last week, the deepest plunge witnessed since November 06, 2008 after demand levels on oil weakened, as crude prices are expected to stabilize in the time being between $70 – 80 per barrel if there are not economic indicators proving otherwise.
The S&P GSCI index settled yesterday at 532.20 after rising by 6.63; whereas the RJ/CRB commodity index added 2.76 to close at 276.30.
In NYMEX as of 03:44 EST; heating futures dropped to record $212.190 per gallon for $1.760; motor gasoline is trading around $229.330 per gallon after declining by $1.640; whereas natural gas contracts fell by $0.045 to record $4.258 per 1000 cubic feet. In London, Brent declined by $0.640 to record $81.32.
Crude opened today at $82.70 per barrel, recording its highest at $82.77 and lowest at $82.15 per barrel, while it is currently trading around $82.20 per barrel.