|News||Crude is trading around $80 after U.S. inventories rise|
|Analysis||Crude prices stabilized this morning above $80 per barrel, after the drop it witnessed amidst yesterday's trades due to immense rise in U.S. crude oil inventories; pointing to more weakness in demand levels on oil from the largest energy consumer in the world.|
The EIA report was released yesterday, where it showed a rise in crude inventories by 7.3 million barrels compared to the previous reading that reached 1.0 million barrels, higher than expectations of 1.3 million barrels; inventories are now at 351.3 million barrels above the medium term average range for this time of year. Meanwhile, motor gasoline receded by 2.7 million barrels last week but still remains above the medium term range, in addition to distillate fuel that include heating that dropped by 2.4 million barrels to become above the medium term average range for this time of year.
U.S. crude inventories continue gaining for the eighth week in a row, pointing to weak demand levels that will prevent oil prices from rising above $82 per barrel at this time.
The dollar against euro rose yesterday to record its lowest since May 2009, after Fitch Ratings reduced Portugal's credit rating to –AA with pessimistic future expectations; thus, pushing consumers to halt purchasing commodities, while confidence levels in markets plunged and especially as the EU summit creeps closer to solve the Greek budget deficit.
The S&P GSCI index closed the late session to record 517.32 after rising by 0.40; whereas the RJ/CRB commodity index receded by 2.23 to close around 269.48.
In NYMEX as of 04:00 EST; future heating contracts rose to record $207.220 per gallon by $0.150; motor gasoline is trading around $222.740 per gallon after falling by $0.620; whereas natural gasoline also plunged by $0.003 to record $4.102 per 1000 cubic feet. In London, Brent receded by $0.040 to record $79.580.
Crude opened today around $80.30 per barrel, recording its highest by $80.70 and lowest by $80.20 per barrel, where it is currently trading around $80.60 per barrel.