NewsPreviousForecastAnalysisCrude stabilized this morning above $83.00 per barrel at the same time data showed reduced fuel inventories, alongside elevated demand levels from the largest energy consumer in the world. In addition, the Feds has released statements regarding an improved US economy which calmed heightened fears in markets.
Crude futures for June delivery opened this morning around $83.39 per barrel after managing to achieve its highest around $83.39 and lowest around $83.99, but managed to currently trade around $83.19 per barrel. Meanwhile, yesterday crude closed around $83.29 gaining by $1.37 per barrel.
Furthermore, oil prices found more support after the EIA report showed a drop in motor gasoline by 1.2 million barrels the previous week, in addition to an increase in consumption levels throughout the past four weeks by 3.1%. On the other hand, the report also showed elevated crude inventory levels by 1.9 helping overall inventory levels to reach 357.8 million barrels.
In addition, the Federal Reserve Bank announced that will be keeping the benchmark interest rate at lower levels for an extended period of time, pointing to improvement in the biggest economy in the world, where in its role helped reduce fears in markets regarding the steep debt woes some European countries are facing, such as Greece, Portugal and Spain. These announcements left a positive imprint on stock markets, especially since the US market closed with gains.
On the other hand, the dollar is still trading near its highest levels in a year as it currently trades around $82.20 after recording its highest around 82.37 and lowest around 82.15; whereas the RJ/CRB commodity index rose by 1.33 recording 274.51. In London, Brent slightly dropped by 0.05$ to record $86.11 per barrel.