NewsEIA ReportPrevious-1.5 Million BarrelsForecast-1.8 Million BarrelsAnalysisCrude gained this morning to stabilize around $77 per barrel, the highest in four weeks supported by the dollar’s drop and major rise in global stock indices.
Crude futures jumped by 2.4% after the dollar index fell by 1.7% in the past two days; thus, pushing investors to purchase high yielding assets after improvement in confidence levels.
In addition, crude was supported by a rise in stock indices, where Japan’s Nikkei today gained by 2% after Dow Jones managed to close on highs of 2.1%; whereas Standard & Poor’s also followed and recorded an incline by 2.4%.
The API yesterday announced a rise in crude inventories by 579.000 reaching 358.7 million barrels; whereas today’s awaited EIA report, scheduled for release at 14:30 GMT, is expected to show a drop in inventories by 1.5 million compared to the 1.8 million barrels slide last week.
The ongoing expectations of a drop in US inventories will reflect the start of improvement witnessed in demand levels, thus strongly supporting crude especially with recovery signs the US economy is showing.
Crude opened yesterday around $74.72 after recording its highest around $77.10 and lowest around $77.60 per barrel, while managing to close trading around $77.05 per barrel.
The S&P GSCI index yesterday closed trading around 507.96 after gaining 7.85 points; whereas the RJ/CRB index closed around 263.50 after rising 3.52 points.
As for NYMEX as of 02:10 EST; motor gasoline slipped to record $211.770 per gallon by $0.380; heating oil futures are trading around $207.120 per gallon gaining $0.270; whereas natural gas receded by $0.028 to record $5.161 per 1000 cubic feet. In London, Brent rose by 0.140 points to record 77.240.
Crude opened today around $77.07 per barrel recording its highest around $77.17 and lowest around $76.85 per barrel, while currently trading around $77.05 per barrel.