|News||Crude plummets for the fifth day in a row|
|Analysis||Crude fell this morning below $85 for the fifth day in a row due to investors fears of a sluggish recovery in the US witnessed in the past two months.|
Meanwhile, yesterday evening witnessed mixed trading despite the support for crude from the euro versus the dollar, due to incentive plans to help Greece. In addition, data released from China showed that they have imported a record supply of oil in March.
Crude futures have jumped above $87 last week compared to trading levels around $69 per barrel in the beginning of last February. While, there are growing expectations from investors that U.S economic recovery will lead to an increase in demand levels on oil; whereas higher inventories last month remain a barrier without achieving an expected economic recovery in oil prices.
In the past period, oil prices have been overshadowed with an optimistic wave regarding a global economic recovery, where increasing expectations claim that Asian countries will lead the way; headed by China and India. This had a major positive effect in pushing oil prices to stabilize above $84 per barrel.
The reports released by Goldman Sachs Group show expectations of a rise in crude prices in the coming three months to an average of $94.50 per barrel and an average of $99 per barrel in the upcoming year, supported by expectations of an economic recovery that will boost demand levels on crude.
Crude opened yesterday around $85.32 per barrel recording its highest around $85.67 and lowest around $84.06, closing around $84.32 per barrel.
The S&P GSCI index closed at 542.52 after climbing by 0.39; whereas the RJ/CRB commodity index also rose by 0.07 to close around 276.20.
In NYMEX as of 02:30 EST; motor gasoline futures rose to record $229.590 per gallon by $0.010; heating is trading around $221.730 per gallon after gaining $5.500; whereas natural gas dropped by $0.007 to record levels around $4.001 per 1000 cubic feet. In London, Brent plunged by $0.080 to record $84.690.
Crude opened today around $84.32 per barrel recording its highest around $84.35 and lowest around $83.92, where it is currently trading around $84.15 per barrel.