|Previous||2.0 million barrels|
|Forecast||1.4 million barrels|
|Analysis||Oil futures this morning were boosted by a weakened dollar, while confidence spread through the market especially with the nearing release of first quarter earnings from American companies that are anticipated to be positive. This sparked investors to accept risk and shift their demand to basic commodities.|
As the global economy is getting back on its feet with the resolution of the Greek crisis and the agreement on the exact amount of the aid, being the most vivid example, optimism is sweeping through global markets where the Euro has risen against the dollar.
Oil received a nudge from global stock markets, where Dow Jones settled yesterday at 1100.00 climbing 0.12% bolstered by better than expected results from several companies, while Nikkei joined the Asian markets' upward trend and closed with a 0.39% gain at 11204.90. Being the insight of the general sentiment in the global economy, rising stocks act as an effective lever for oil.
Growth in the world biggest oil consumer's reserves by 1.41 million barrel during the last week was reported by the American Petroleum Institute (API) yesterday. Engine fuel reserves had increased by 1.6 million barrels, as both reports emphasize the weak demand on the crude.
A reserve increase of 1.4 million barrels compared to a prior 2.0 million barrel increase is expected to be released today by the Energy Information Administration (EIA), as the diminishing demand and consumption of crude will stand in the way of price growth.
We await a report on American retail sales, as projections point to a rise, though they remain relatively feeble. This underlines the weak consumption in the United States in the period of high unemployment that recorded 9.7% last month.
Oil futures due May opened yesterday at $84.32 recording a high of $84.40 and a low of $82.52m, to close at $83.77 per barrel.
S&P GSCI closed with a gain of 1.40 points at 543.92, while RJ/CRB raked in 1.15 points to close at 277.35.
Motor Gasoline futures due May retreated $0.240 to $230.690/gallon in NYMEX trading at 2:30am EST, whereas Heating futures have risen by $0.440 as they are trading around $221.860 and Natural gas has descended by $0.022 to $4.138/1000 cubic feet. As for London, Brent futures due May have risen to $84.910 up by $0.190.
Today oil futures for May settlement opened at $83.80 to record a high of $84.43 and declined to lows of $83.72, while currently trading at $84.25 per barrel.