NewsThe EIA ReportPrevious-5.1 Million BarrelsForecast-1.1 Million BarrelsAnalysisCrude trades above $77 per barrel following the drop in US inventories though slightly less than expected, thereby supporting crude near its highest levels in three weeks. In addition, US stocks also closed on a high note followed by Asian markets rise affected by the improvement witnessed in corporate earnings reports, which helped raise optimism in markets.

Meanwhile, a tropical storm in the Caribbean is feared to effect production in the Gulf of Mexico which further sustained oil prices higher.

Crude today traded around $77 per barrel recording its highest around $77.95 and lowest around $77.45, while it currently is trading around $77.92 per barrel.

The API reported yesterday a drop in US inventories by 241,000 barrels to 353.3 million last week, lower than the expected 1.6 million barrels. However, these results are considered to be a positive sign reflecting improved demand in the US. 

The EIA report is expected to be released later on today.

Crude yesterday traded around $77.58 per barrel recording its highest around $77.87 and lowest around $76.00 per barrel, closing around $77.82 per barrel. It managed to record a rise of $0.68 by 0.9% due to positive sentiment over US inventories status and the market in general.

On the other hand, investors are eyeing stock markets as they gain to reflect the positive sentiment on high-yielding assets, thereby reflecting positively on crude despite of weak US housing data that had been outweighed by the positive corporate earnings.

Moreover, the National Hurricane Center said that the Gulf of Mexico is threatened to be struck by a hurricane for the second time this season, thereby causing crude to gain since the Gulf makes up around 31% of US oil output and 10% of natural gas.

As for NYMEX as of 04:46 EST; motor gasoline rose to $209.070 per gallon by $0.058; heating is trading around $203.700 per gallon gaining by $0.061; whereas natural gasoline also rose to $0.31 per 1000 cubic feet by $4.604. In London, Brent futures rose by $0.63 to record $76.700.