NewsCrude trades above $79 as stocks rally amid storm threats in the GulfPreviousForecastAnalysisCrude traded today above $79 per barrel as stock markets surged more than expected while the dollar declined; adding to that Hurricane Bonnie is still threatens the Gulf of Mexico spiking concern over supplies.
Crude rose this morning above $79.20 per barrel, where the dollar plunged against a basket of foreign currencies headed by the euro, as data showed a notable improvement within the key sectors in the euro zone that superseded expectations. It traded today around $76 per barrel recording its highest around $79.55 and lowest around $78.90, while currently trading around $79.20 per barrel.
Moreover, traders sold contracts due to optimism in stock markets as demand on fuel is expected to climb; while, stocks rallied as EBay Inc. and Caterpillar Inc. beat estimates, thereby reflecting improved sentiment in markets.
Meanwhile, markets anxiously await the stress test results for European banks which is awaited to be released later on today.
Crude yesterday traded around $77 per barrel recording its highest around $79.40 and lowest around $76.15 per barrel, closing around $79.20 per barrel. It managed to record a rise of $2.74 or 3.6% due to improved risk appetite in markets as the dollar declined while stocks surged on better than expected second quarter corporate earnings.
On the other hand, the US National Hurricane Center said that a second hurricane is threatening the Gulf of Mexico where Tropical Storm Bonnie has formed in the south of the Bahamas and is on its way towards Florida then the Gulf of Mexico. However, due to the present concern fuel demand has been limited as the production margin rose by 4.5%, especially since the Gulf makes up about 31% of US oil output and 10% natural gas.
As for NYMEX as of 04:45 EST; motor gasoline dropped by $214.150 per gallon to record $0.24; heating is trading around $206.420 per gallon gaining by $0.09; whereas natural gasoline also fell by $0.02 per 1000 cubic feet to record $4.642. In London, Brent futures rose $0.10 to record $77.740.