NewsCrude drops to hover around $76 pressured by to US crude supplies and stock marketsPreviousForecastAnalysisCrude dropped this morning to hover around $76.50 per barrel, following to the plunge it witnessed yesterday after Bernanke called the outlook “uncertain” for the economy and resorting to more easing monetary policies if necessary. Meanwhile, the EIA report yesterday shows a rise in inventories in the second largest energy consumer, reflecting a sluggish pace in the economy’s demand.
Crude today traded around $76 per barrel recording its highest around $76.85 and lowest around $76.15, while it currently is trading around $76.43 per barrel.
The Federal Reserve chairman Ben Bernanke said yesterday in his testimony that the economic situation remains unclear and that the Fed is prepared to take further steps by adding additional policies to help the US economy from the pending dire situation. He also added that inflation will remain subdued for the upcoming years as unemployment will decline gradually, but will manage to maintain its grip on growth.
Crude yesterday traded around $77 per barrel recording its highest around $78.52 and lowest around $76.20 per barrel, closing around $76.42 per barrel. It recorded a drop of $1.02 due to Bernanke’s statement as well as a pessimistic wave overtaking US and stock markets, thereby undermining investor optimism in markets. Bernanke is expected to continue his semiannual testimony this evening, while on the other hand US data is also expected to be released today illustrating the extent of vulnerability home sales is witnessing in the country.
Meanwhile, according to the Energy Information Administration report yesterday, US inventories unexpectedly rose showing that the economy’s consumption recovery is in a rather sluggish pace. Crude inventories rose by 0.4 MB opposing the forecasted drop by 1.2 MB; whereas the previous week showed a major drop by 5.1 MB.
As for NYMEX as of 04:30 EST; motor gasoline rose by $207.030 per gallon to record $0.12; heating is trading around $199.140 per gallon gaining by $0.11; whereas natural gasoline also rose to $0.53 per 1000 cubic feet to record $4.537. In London, Brent futures recorded $0.00 slightly gaining $75.370.