|News||The EIA Repot|
|Previous||2.4 million barrels|
|Forecast||7.3 million barrels|
|Analysis||Crude is trading this morning above $82 per barrel, supported by signs from global economies of continued recovery from the recession that has lasted longer than expected.|
Crude managed to end higher yesterday by 0.7% to record its highest around $82.75 per barrel, after reported higher consumer confidence in March exceeding market expectations. The improving confidence levels are being reflected in a positive and direct way on US stock markets; the Dow Jones Industrial Average rose by 0.11% to record its highest levels since September 2008.
Today, we await the release of Japan's Tankan report that is tied to the general sentiment towards industries, where it is expected to rise for the fourth consecutive quarter. The improvement in Japanese industrial confidence levels will strongly support oil prices, since Japan is considered to be the third energy consumer in the world after the US and China.
The API report yesterday showed a slight rise that was better than expected in US inventory levels last week, where inventories managed to rise by 421 thousand barrel compared to expectations of inventories to gain by 2.5 million barrels.
As for the eagerly await release of the EIA report today, we can expect a rise in inventories last by week 2.4 million compared to the previous reading by 7.3 million barrels. This gain is considered to be the eighth consecutive buildup in US inventory levels; reflecting fragile demand levels on oil that will play a role in preventing oil from more gains.
The S&P GSCI index closed yesterday at 526.46 adding 1.88; whereas the RJ/CRB commodity index also recorded a rise by 0.89 to close around 273.72.
In NYMEX as of 03:00 EST; heating oil futures dropped to $212.00 per gallon by $0.470; motor gasoline is trading around $227.500 per gallon rising by $0.030; whereas natural gas followed and ascended by $0.60 to record $3.997 per 1000 cubic feet. In London, Brent fell by $0.080 to record $81.200.
Crude opened today around $82.45 per barrel recording its highest around $82.50 and lowest around $82.20 per barrel, where it is currently trading around $82.35 per barrel.