NewsPreviousForecastAnalysisCrude continued to rise today for the third consecutive day to trade above $72.00 per barrel, due to the effect of the positive US data on investors in markets alongside the dollar plummeting against a basket of foreign currencies.
Crude opened today around $70.74 recording its lowest around $70.67 and then head upwards to record its highest around $72.60, as it currently trades around $72.33 per barrel gaining by $0.82 or 1.15%. On the other hand, crude yesterday closed with gains by 4.00% or $2.76 per barrel, considered to be the best daily rise witnessed since last September to close around $71.51 per barrel.
Throughout the past three weeks, crude plunged by 20.0% due to the fear that had struck markets from Europe’s sovereign debt crisis; meanwhile the release of US data yesterday increased investors’ risk appetite after the report recorded higher demand on durable goods for the fourth consecutive month in April.
In addition, the dollar witnessed a drop according to its strength gauge against a basket of currencies, where the dollar index opened today around 87.27, and achieve its highest around 87.38 and lowest around 86.31; while it currently is trading around 86.58.
The rise witnessed in crude is due to the absence of vital data from the euro zone; thus pushing investors to focus in on US data since the EIA report yesterday unveiled a rise in oil inventory levels from the previous week of 2.5 million barrels to reach 365.1 MB, the sixteenth rise in 17 weeks!
On the other hand, motor gasoline futures dropped by 203.00 thousand barrels to reach 221.6 MB and distillate inventories dropped by 267 thousand barrels to reach 152.5 MB; despite of the drop it is still considered to be 23.4% higher than the average five-year range.
Today, crude managed to also rise in Asian markets and thus pointing to a substantial improvement in risk taking by investors; Japan’s Nikkei closed surging by 1.2% or 117.06 points improving by 9639.72 points from its lowest level in months.
In London, Brent closed trading 0.88% by $0.63 per barrel, where it currently is trading around $72.37 per barrel.