NewsCrude stabilizes above $74 per barrel this morningPreviousForecastAnalysisCrude this morning stabilized above $74 per barrel due to investors’ optimistic future expectations regarding the global economy’s recovery, thereby backing demand on crude oil.
Meanwhile, crude yesterday managed to gain $1.34 closing around $75.12 per barrel, due to the optimism wave dominating markets specifically after the enhanced general confidence levels that were boosted by Asian economies assisting the global economy from its critical stage.
Crude is trading between $70 – 80 per barrel after dropping from $87 to $64 last month after fears dominated markets, due to the negative impact the debt crisis is creating on the global economy’s attempt at recovery. In addition, Moody’s yesterday cut Greece’s credit rating to junk, which followed S&P and Fitch similar moves.
Moreover, crude has benefited for last week’s reported drop in inventories which were better than expected in markets, reflecting an improvement in demand levels on black gold from the largest energy consumer in the world, specifically with the start of the summer season.
On the other hand, several analysts think that inventories will continue their downward spiral in the upcoming few weeks, thus reflecting the beginning of improvement in demand from developed countries specifically after showing signs of a close recovery in the ever so expected global economic recovery.
Crude yesterday opened around $73.77 per barrel recording its highest around $75.95 and lowest around $73.77, while managing to close trading around $74.75 per barrel.
The S&P GSCI index yesterday closed around 500.10 after rising 7.00 points; whereas the RJ/CRB index closed around 259.98 after climbing 4.06 points.
As for NYMEX as of 02:25 EST; motor gasoline futures plunged to $206.460 per gallon by $1.180; heating is trading around $201.600 per gallon after dropping by $2.370; whereas natural gas also ascended to $0.044 recording $5.050 per 1000 cubic feet. In London, Brent fell 0.310 points to record 74.890.
Crude opened today around $74.75 per barrel recording its highest around $75.35 and lowest around $74.70 per barrel, while it's currently trading around $74.80 per barrel.