NewsThe EIA ReportPrevious1.9 million barrels Forecast0.7 million barrels AnalysisCrude declined this morning for the seventh consecutive day below $69 per barrel, with consistent fear over weaker outlook for demand amid ongoing market and fiscal havoc. Meanwhile, numerous investors have turned to postponing commodity purchasing after expectations regarding the European debt crisis point to the situation further deteriorating.
In addition, crude fell after the euro versus the dollar plunged to its lowest level in four months in the early session, although European countries are still struggling to face the budget deficit by resorting to posterity measures.
Crude plummeted subsequent to the API showing a sudden rise in US motor fuel inventories last week; thus, supporting expectations of higher inventories to be reported by the EIA, which is expected to show a buildup of 0.7 million barrels last week compared to the previous reading of 1.9 million barrels, marking 15 of 16 weeks of gains.
On the other hand, OPEC has stated its worries regarding the drop in oil prices, where the Angolan Prime Minister Jose de Vasconcelos yesterday said the organization might call for an urgent meeting if oil prices continue plunging.
Crude yesterday opened around $70.50 recording its highest around $72.50 and lowest around $68.87 per barrel, where it managed to close around $69.0 per barrel.
The S&P GSCI closed the session at 486.86 after falling by 0.43 points; whereas the RJ/CRN commodity index gained by 1.73 to close around 254.93.
As for NYMEX as of 03:30 EST; motor gasoline futures plummeted to $202.030 per gallon by $2.280; heating is trading around $194.830 per gallon after ascending by $1.320; whereas natural gas dropped by $0.012 to record $4.330 per 1000 cubic feet. In London, Brent slumped by $0.630 to record $73.800.
Crude contracts for June settlement opened today around $69.05 per barrel recording its highest around $69.02 and lowest around $67.59 per barrel, where it currently is trading around $68.50 per barrel.