NewsCrude futures trade this morning around $74 per barrelPreviousForecastAnalysisCrude futures gained this morning after the US dollar against a basket of foreign currencies dropped; thus, supporting investors on purchasing high-yielding assets.
Last Friday, crude managed to drop 0.8% to close around $73.97 per barrel after Fitch Ratings reduced Spain's credit ratings as the nation lost it AAA rating; spreading panic amidst investors’ due to escalating woes regarding the debt crisis throughout Europe.
Meanwhile, in May crude fell by 14% to record it’s lowest since December 2008 due to market instability from the European sovereign debt crisis.
Markets today are being overshadowed by political woes in the Asian continent, where Japan seems to be in an unstable state after the Social Democratic Party quit the coalitions government. Meanwhile, in the Middle East Israeli air forces hit a ship transporting aid heading to Gaza killing at least 10 people, due to the escalating political tension investors are less likely to enter financial markets.
The US today is celebrating Memorial Day, while UK celebrates Spring Bank Holiday; therefore, increasing expectations of low trading levels in markets.
Crude oil opened last Friday around $74.85 recording its highest around $75.70 and lowest around $73.12 per barrel closing around $73.60 per barrel.
The S&P GSCI Index closed yesterday around 488.19 after dropping 4.04 points; whereas the RJ/CRB Index also fell by 2.92 to close around 254.80.
As for NYMEX as of 03:00 EST; motor gasoline futures rose to record $203.360 per gallon by $0.700; heating is trading around $201.480 per gallon after ascending by $1.030; whereas natural gasoline gained by $0.015 to record $4.356 per 1000 cubic feet. In London, Brent climbed by $0.450 to record $74.470.
Crude opened today around $73.97 recording its highest around $74.60 and lowest around $73.80 per barrel, currently trading around $74.50 per barrel.