NewsCrude climbs for the first time in three days backed by Bernanke’s recovery confirmation commentsPreviousForecastAnalysisCrude gained this morning rising above $71 per barrel following Bernanke’s comments that have reduced investors’ fears regarding the strength of recovery for the leading economy and the global economy.
Crude managed to rise by 0.4% subsequent to Bernanke’s statement regarding the largest economy in the world witnessing a stable pace in recovery; whereas expectations for a drop in inventories by one million barrels supported crude further.
The Feds Chairman maintains hopes of the U.S economy staying away from the clutches of a double dip recession, where he expects the economy to continue the moderate recovery although unemployment rates are expected to remain high in the upcoming period. Meanwhile, he did signal that the Feds will start raising rates before the full recovery in the labor market and increasing inflationary pressures.
According to global data, crude is expected to stabilize between $70-80 per barrel which is considerably a fair price according to consumption levels from the largest energy consumers in the world; China is currently witnessing stability, while the US is on the right track despite of ongoing European debt woes.
In addition, crude oil also managed to help Asian stocks and US futures climb after the drop recorded yesterday; the Dow Jones slumped by 1.2% after renewed fears regarding the European debt crisis.
Crude futures yesterday opened around $70.40 recording its highest around $72.42 and lowest around $69.50 per barrel, where it managed to close around $71.10 per barrel.
The S&P GSCI index yesterday settled at 475.16 gaining 0.36 points; whereas the RJ/CRB index also rose by 0.04 points closing around 248.98.
As for NYMEX as of 02:42 EST; motor gasoline traded higher at $200.360 per gallon by $0.870; heating is trading around $197.610 per gallon after its gain by $0.780; whereas natural gas also managed to incline $0.034 to record $4.950 per 1000 cubic feet. In London, Brent gained 0.320 points to record 72.440.
Crude today opened around $71.12 recording its highest around $72.10 and lowest around $70.72 per barrel, currently trading around $72.05 per barrel.