NewsCrude falls towards $76 on the back of high US inventories PreviousForecastAnalysisThe release of the EIA report has shown an unexpected rise in US inventories by 2.0 million barrels above the medium term average range for this time of year, thereby discouraging investors from markets. Meanwhile, motor gasoline recorded a drop by 0.8 MB last week; distillate fuel gained by 0.3 MB, yet both remain above the medium term average range for this time of year.
Crude today managed to trade around $76 recording its highest around $76.50 and lowest around $75.93 per barrel, while it currently is trading around $76.05 per barrel. Meanwhile, yesterday it closed around $77 recording its highest around $77.72 and lowest around $77.05 per barrel, where it managed to close around $77.60 per barrel.
Crude’s alarming rise signals continued sluggish demand on Oil amid the volatile recovery which remains disproportionate. The Fed stated yesterday in the FOMC decision that financial conditions are not assisting the country’s attempts to move within the path of the expected recovery and notable growth.
Meanwhile, crude last month dropped towards $66 per barrel due to investors’ fears over the outlook for the recovery, where the European sovereign debt crisis spread over the continent. Nonetheless, with measures adopted and eased fears of default crude managed to regain some of its losses on eased prospects for a double-dip recession, yet still the slowdown fears are evident holding crude back from excessive gains.
The S&P GSCI Index managed to close yesterday around 500.43 recording a drop by 8.28 points; whereas the RJ/CRB Commodity Index closed around 259.72 plummeting by 2.96 points.
As for NYMEX as of 03:15 EST; motor gasoline is trading around $208.980 per gallon rising by $0.36; heating is trading around $206.740 per gallon also dropping by $0.05; whereas natural gasoline is also trading around $4.786 per 1000 cubic feet dropping by $0.28. In London, Brent futures fell by $0.16 to record $76.150.