Fundamental Oil Report (2010-07-29)

Crude today traded above $76 per barrel recording its highest around $77.40 and lowest around $76.72, while it currently is trading around $77.15 per barrel.

Moreover, oil has been trading around $75 throughout this year due to mixed US economic data, where corporate earnings have showed a notable climb although unemployment levels still remain high as the second largest consumer in the world witnesses a sluggish recovery pace.

Meanwhile, oil inventories managed to grow 7.3 MB last week from the forecasted drop of 2.3 MB as distillates recorded a rise as well to 938 thousand barrels; motor gasoline managed to also follow and gain 91 thousand barrels, reported by the EIA yesterday.

Crude yesterday traded above $77 per barrel recording its highest around $77.70 and lowest around $75.90 per barrel, closing around $76.82 per barrel. It managed to drop by 0.66% due to disappointing US consumer confidence and weak economic growth, thereby spreading a pessimistic wave over markets.

Today we await for the release of US jobless rate data, where this data is expected to increase the negative effect on trading in the oil market if the employment sector shows pessimistic results in the country.

As for NYMEX as of 03:30 EST; motor gasoline rose by $206.760 per gallon to record $0.20; heating is trading around $200.320 per gallon gaining $0.34; whereas natural gasoline rose by $0.47 per 1000 cubic feet to record $4.740. In London, Brent futures climbed $0.28 to record $76.270.