NewsEIA ReportPrevious-1.9 Million BarrelsForecast-1.1 Million BarrelsAnalysisCrude continues climbing this morning above $72 per barrel due to support from the optimism dominating markets with the possibility of crude dropping, according to the anticipated EIA report today.
Yesterday’s API report showed a decline in crude inventories for the second consecutive week around 4.54 million barrels by 1.13% compared to the week before, while lower inventories are expected to continue to drop 1.1 million barrels compared to the previous reading of -1.9 million barrels.
In addition, the API expected lower crude prices through 2010 to average $78.75 compared to previous expectations of $82.18 per barrel, where future expectations regarding crude consumption levels in the current year are slightly lower at 85.51 million barrels daily from 85.55 million barrels daily.
Moreover, crude gained support from Bernanke’s comments that insured that the US economy will remain within its recovery track steadily, where Bernanke maintains hopeful expectations that the US will not fall into a double dip recession as it will manage to surpass it.
Meanwhile, BP Plc oil leak in the Gulf of Mexico had a hand in reducing oil and natural gas production in the gulf, where prices are expected to hover around current levels between $70 – 80 per barrel, specifically since this incline is likely amid the hurricane season shaking several countries around the world.
Crude managed to open yesterday around $71.15 per barrel recording its highest around $72.50 and lowest around $70.72 closing around $72.45 per barrel.
The S&P GSCI index closed yesterday around 475.16 after gaining 0.36 points; whereas the RJ/CRB index also followed and rose 0.04 points to close around 248.98.
As for NYMEX as of 02:59 EST; motor gasoline climbed recording $199.450 per gallon by $0.540; heating oil is trading around $196.820 per gallon after rising by $0.290; whereas natural gasoline fell by $0.008 to record $4.800 per 1000 cubic feet. In London, Brent rose 0.380 points to record 72.680.
Crude opened today around $72.45 recording its highest around $72.77 and lowest around $72.00 per barrel, currently trading around $72.65 per barrel.