|News||Crude fell below $85 on renewed fears in markets|
|Analysis||Crude returned to trade below $85 for the second consecutive day this morning after the dollar gained ground and Asian equities slumped.|
Crude fell after the dollar climbed against a basket of foreign currencies after the US data yesterday from the services sector, showing that weekly unemployment benefits rose as investors took advantage of this chance and locked in on profits after the rise witnessed this week.
Meanwhile, oil prices today were affected by the drop in Asian stock indices with renewed fears in markets regarding Greece. Many analysts think that it will resort to the rescue plan the EU had previously approved last month; providing European loans worth 30 billion euros and could expand another 15 billion euros from the IMF, especially after the Greek financial minister called onto the EU, IMF and the ECB to hold a meeting on April 19th in Athens
On our economic agenda today is the US housing starts, which is expected to show improvement in March as it plays a role in supporting several different sectors in the economy, specifically since the housing sector is considered to be one of most important sectors that had a hand in triggering the recession. Henceforth, growth in this sector would support growth levels in the country.
Crude opened yesterday around $85.870 and recorded its highest around $86.225 and lowest around $85.200 per barrel, while closing around $85.200 per barrel.
The S&P GSCI index closed at 553.31 after gaining by 0.89 points; whereas the RJ/CRB commodity index fell 0.21 points to close around 279.75.
In NYMEX as of 02:49 EST; motor gasoline futures dropped to $231.000 per gallon by $1.620; heating futures are trading around $224.170 per gallon after falling by $1.060; whereas natural gas rose by $0.028 to record $4.013 per 1000 cubic feet. In London, Brent dropped by $0.450 to record $87.140.
Crude opened today around $85.300 recording its highest around $85.400 and lowest around $84.650 per barrel, where it’s currently trading around $84.750 per barrel.