NewsThe EIA ReportPrevious2.0 Million BarrelsForecast-1.8 Million BarrelsAnalysisCrude rose to its highest level in a week on eased fears over the outlook for the recovery and the projected surge in retail sales alongside inventories drop. Global stock markets rallied and thereby supported commodities as risk aversion waned.
Crude today opened around $74 per barrel recording its highest around $75.07 and lowest around $74.47, while it currently is trading around $74.80 per barrel.
Following last week's sharp slump, the International Council of Shopping Centers’ positive estimates of a notable expansion in retail sales at the fastest pace in four years supported the rally yesterday! Meanwhile, the API also reported on Wednesday a drop in inventories to 351.8 MB by 2%, considered to be the biggest drop in a year.
Crude yesterday opened around $72.05 per barrel recording its highest around $74.90 and lowest around $71.45 per barrel, closing around $74.90 per barrel. It managed to record a rise of $2.09 due to lower US inventories and increased confidence in the market.
Moreover, the fact that the API report has shown positive estimates only fuels additional optimistic signs ahead of the EIA report expected to be released later on today will, reporting a drop in inventories, thereby spurring that the largest consumer in the world is recovering.
On the other hand, the impact of recovery signs from the US economy has sent a wave of optimism throughout global stock markets, consequent to the IMF raising global growth estimates for the year following a strong first half; although warning of a fluctuation in financial markets due to the rise in risk within the path to recovery.
As for NYMEX as of 02:45 EST; motor gasoline gained to $204.140 per gallon by $1.610; heating oil is trading around $199.080 per gallon rising by $0.044; whereas natural gas also climbed $0.028 per 1000 cubic feet to $4.609. In London, Brent futures rose by $0.450 to record $73.960.