|News||The EIA Report|
|Previous||7.3 Million Barrels|
|Forecast||-1.4 Million Barrels|
|Analysis||Crude today is hovering around $82, dropping after the four-day rise due to pessimistic data from the US, with higher than expected inventory levels; despite of the dollar weakening against a basket of major currencies to record its lowest level in four months.|
Crude today traded around $82 per barrel recording its highest around $82.45 and lowest around $81.60, while it currently is trading around $81.75 per barrel.
The rise crude has been witnessing in the past four days, reaching its highest levels in three months, was due to the US dollar weakening against a basket of foreign currencies and specifically the euro where it dropped to its lowest level in three months.
The dollar index, which measures the green currency’s performance against the six major currencies, has recorded its lowest level in four months recording 80.50 after recording its highest around 80.68, while it currently is trading around 80.66.
Crude yesterday traded above $81 per barrel recording its highest around $82.62 and lowest around $81.10 per barrel, closing around $82.42 per barrel. It managed to gain $1.21 as futures climb and improved sentiment regarding global economic prospects, where Europe is showing ongoing recovery in a faster than expected pace.
Meanwhile, the API yesterday showed that US inventories had risen last week by 2.3 MB, alongside other reports that showed a drop in home sales alongside weaker personal income and consumption; thus, confirming fears of the weakening economic recovery pace in the second largest energy consumer in the world. On the other hand, the anticipated EIA report is expected to be released later on today with hopes for a drop following the previous week's buildup, yet still the market is jittery ahead of the expected downbeat ADP and service data from the US and also after the rise reported by API yesterday.
As for NYMEX as of 04:45 EST; motor gasoline dropped towards $217.750 per gallon by $0.73; heating is trading around $218.500 per gallon losing $0.68; whereas natural gasoline rose by $0.75 per 1000 cubic feet to record $4.674. In London, Brent futures fell by $0.87 to record $81.960.