|News||Crude trades around $82 as commodities pause the three-month rally|
|Analysis||Crude hovered above $82 per barrel today as the three-month rally in commodities witness a standstill, alongside optimistic US corporate earnings and inventories.|
Crude today traded above $82 per barrel recording its highest around $82.45 and lowest around $82.05, while it currently is trading around $82.25 per barrel.
The release of data from the US yesterday showed that the second largest energy consumer in the world, which had supported the gain witnessed in crude prices as it reached its highest in three months. On the other hand, the labor report showed more jobs added to the private sector, which is better than expected alongside the the services sector expansion.
Crude yesterday traded above $82 per barrel recording its highest around $82.95 and lowest around $81.60 per barrel, closing around $82.42 per barrel. It managed to lose $0.08 or by 0.10% as optimistic sentiment spread throughout the market, with lower US inventories and positive corporate earnings paving the way to a steady recovery for the future.
Moreover, the EIA report yesterday highlighted a drop in US inventories by 2.8 MB, surpassing previous expectations of 1.4 MB. The unexpected rise in inventories by 729 thousand barrels reaching 223 MB the previous week, recording its highest level since 1990, signals weakened demand in the US.
As for NYMEX as of 04:16 EST; motor gasoline dropped by $217.040 per gallon to record $0.21; heating is trading around $219.850 per gallon losing $0.17; whereas natural gasoline rose by $0.15 per 1000 cubic feet to record $4.744. In London, Brent futures fell by $0.47 to record $81.810.