NewsPreviousForecastAnalysisCrude is trading today around $72 after the dollar inclined on low confidence levels in markets once again; thus, pushing investors to purchase the dollar as a safe haven.

The current fears enveloping markets are due to the austerity policies European nations has adopted to reduce the budget deficit which might affect the recovery, especially after China reported slowing activity in the manufacturing sector last month and thereby negatively reflecting on global stock indices that also fell yesterday.

Financial markets yesterday were affected by European data that had showed an unexpected rise in unemployment rates last month to 10.1% it’s highest in 12 years, as the sovereign debt crisis in the euro zone continues negatively impacting overall financial markets and specifically Europe. Therefore, we expect abstain from seeing any notable improvement in economies until debt woes ease. 

Inventory status reports are delayed this week each by one day due to Memorial Day holiday on Monday. In addition, the API will also be postponing the release of its weekly report at a later time; whereas the EIA is expected to also release its report on Thursday.

Crude opened yesterday around $74.55 recording its highest around $75.30 and lowest around $71.65 per barrel, while closing around $71.92 per barrel.

The S&P GSCI index closed around 481.11 after slipping by 7.09 points; whereas the RJ/CRB index also fell by 2.41 points to close around 252.39.

As for NYMEX as of 03:15 EST; motor gasoline futures climbed to $198.770 per gallon by $0.520; heating oil is trading around $197.650 per gallon gaining $0.610; whereas natural gasoline also rose by $0.013 to record $4.261 per 1000 cubic feet. In London, Brent ascended by $0.030 to record $72.740.

Crude opened today around $71.90 recording its highest around $72.90 and lowest around $71.75 per barrel, while currently trading around $72.60 per barrel.