|News||Crude drops below $77 due to signs of global growth slowdown|
|Analysis||Crude is trading below $77 per barrel extending losses due to signs of a slowdown in the global growth pace, reflecting weaker growth in the second largest energy consumer in the world.|
Crude today traded below $77 per barrel recording its highest around $77.90 and lowest around $77.12, while it currently is trading around $77.90 per barrel.
The EIA report yesterday showed that crude inventories dropped by 3 MB compared to expectation of a 1.9 MB fall; gasoline recorded its highest rise in ten years of 409 thousand barrels to 223.4 MB, where it was expected to only gain by 250 thousand barrels; distillates that include heating oil followed and surged 3.46 MB where expectations were for a rise only by 1.75 MB.
Crude yesterday traded below $80 per barrel recording its highest around $80.42 and lowest around $77.25 per barrel, closing around $77.30 per barrel. It lost $2.23 or 2.8%, where despite of the pessimistic data markets were slightly affected by it.
Meanwhile, the US dollar’s three consecutive day ascend leading it to record its highest levels in three weeks, negatively affected crude trading. However, the dollar’s increase in value was due to the drop in investor risk appetite as fears were renewed regarding the pace of recovery for the global economy; while, a chain of negative data show a sluggish pace of growth in the US and Chinese economy, thereby reflecting on stock markets causing major losses.
As for NYMEX as of 03:00 EST; motor gasoline declined to $199.00 per gallon to record $0.38; heating is trading around $205.95 per gallon losing $0.76; whereas natural gasoline fell by $0.21 per 1000 cubic feet to record $4.317. In London, Brent futures dropped $0.85 to record $76.980.