|News||The EIA Report|
|Previous||-3.0 Million Barrels|
|Forecast||-0.9 Million Barrels|
|Analysis||Crude dropped today to trade around $75 per barrel after the API showed a rise in US crude inventories, the second largest energy consumer in the world after China, thereby negatively reflecting on crude.|
Crude today traded above $75 per barrel recording its highest around $75.70 and lowest around $75.02, while it currently is trading around $75.15 per barrel.
On the other hand, the economic data released from the US positively reflected on trading as the housing sector data came in lower than expected, however, the US dollar reinforced crude’s climb yesterday.
Crude yesterday traded above $75 per barrel recording its highest around $76.62 and lowest around $75.00 per barrel, closing around $75.45 per barrel. It managed to lose $0.53 or 0.84%, due to pessimism regarding higher supply levels and weakened demand in US crude supplies.
The API report yesterday showed that crude inventories sharply rose by 5.87 MB last week gaining by 2.03 MB; whereas forecasts expected a drop by 100 thousand barrels. In addition, as gasoline and distillates also climbed opposed to market expectations of a drop in supplies, thus insuring weakened demand from one of the top energy consumers in the world, alongside the slow recovery pace the global economy is witnessing.
Moreover, the EIA report is expected to be released today as expectations point to a drop by 0.9 MB last week compared to the previous decline of 3 MB.
As for NYMEX as of 04:59 EST; motor gasoline dropped to $193.230 per gallon to record $1.07; heating is trading around $201.250 per gallon losing $0.66; whereas natural gasoline also dropped by $0.05 per 1000 cubic feet to record $4.265. In London, Brent futures shed $0.69 to record $76.400.