NewsCrude rose above $77 after the market crash yesterdayPreviousForecastAnalysisCrude stabilized this morning above $77 after the slump by 11% due to the sudden collapse of global markets yesterday.
As for today, crude prices were supported due as the euro trimmed its losses to 1.2730, as the Japanese finance minister said the G7 will hold a conference call meeting today to discuss the Greek debt crisis after the global stock markets' crash yesterday. However, it is expected that the EU members will show the steps that will be taken with the IMF to aid Greece.
The euro versus the dollar yesterday plunged to 1.2520 its lowest in 14 months, after statements by Mr Trichet saying the ECB did not discuss purchasing government bonds. This sparked fears throughout markets that the 110 billion euro plan from the EU and IMF was not enough to solve the Greek debt problems, as well as stop the crisis from spreading further into Spain, Italy Portugal and other indebted nations.
Meanwhile, global stock indices yesterday witnessed a major plummet as the US Dow Jones plunged 9.2% or around 1,000 points the most ever before trimming the losses and closing down by 3.20%, which is unacceptable and thus pushed Security and Exchange Commission (SEC) to investigate whether this drop was an error in E-trading or if there has been any manipulation in markets in order to make illegal profits.
Financial markets eased decline in the early session, as investors await Nonfarm Payroll that is expected to show a big improvement in the labor sector, which will support further the recovery in the US, thus supporting oil prices recover some of the losses.
Crude opened yesterday around $79.55 recording its highest around $80.30 and lowest around $74.52, closing around $76.72 per barrel.
The S&P GSCI index closed at 521.81 after dropping by 13.86; whereas the RJ/CRB commodity index followed and plunged by 3.65 to close around 267.95.
As for NYMEX as of 03:59 EST; motor gasoline dropped by $215.500 per gallon for $0.130; heating futures is trading around $211.150 per gallon after plunging by $0.220; whereas natural gas followed and fell by $0.002 to record $3.927 per 1000 cubic feet. In London, Brent gained by $0.100 to record $79.930.
Crude opened today around $76.85 recording its highest around $77.70 and lowest around $76.65, where it currently is trading around $77.33 per barrel.