NewsThe EIA ReportPrevious1.7 Million BarrelsForecast-1.2 Million BarrelsAnalysisCrude dropped this morning after the unexpected gain in crude inventories, according to the API yesterday. Housing data were worse than expected that have pointed out that the US economy is still facing numerous obstacles on its way to recovery which further weighed on the market
Crude futures for August delivery today dropped by 0.43% to trade around $77.42 per barrel as of 01:09 EST, due to late US data that had shown an unexpected drop in home sales by 2.2% in May.
Yesterday’s API report showed a rise in inventories last week by 3.69 MB recording its highest levels in three weeks, despite of the climb witnessed in the report that point to a drop expected in the anticipated EIA report by 1.2 MB; compared to the spike in inventories the previous week by 1.7 MB.
Investors are currently trading with caution, despite of the positive signs from Asian economies that support the global economic recovery, especially since the US is still suffering in its path to recovery. Meanwhile, European economies are attempting to contain the debt crisis taking over the continent sparked from Greece.
On today’s economic agenda, we await the Feds rate decision where there are increasing expectations that the bank will be maintaining the current policy, holding interest rate unchanged to support growth. In addition, Bernanke had pointed out that the bank will be keeping the benchmark interest rate currently set for an extended period of time.
Crude yesterday closed around $78.10 recording its highest around $78.87 and lowest around $77.30 per barrel closing trades around $77.42 per barrel.
The S&P GSCI index yesterday closed around 508.70 after dropping by 4.13 points; whereas the RJ/CRB index closed around 262.68 after falling by 1.01 points.
As for NYMEX as of 02:15 EST; motor gasoline is trading around $212.480 per gallon slipping by $0.41; heating is trading around $210.950 per gallon also dropping by $0.16; whereas natural gasoline is also trading around $4.747 per 1000 cubic feet falling by $0.19. In London, Brent futures fell by $0.41 to record $77.720.
Crude opened today around $77.45 recording its highest around $77.72 and lowest around $77.05 per barrel, while it currently is trading around $77.60 per barrel.