|News||Crude slides below $73 on rising economic woes|
|Analysis||Crude dropped below $73 per barrel today for the fifth consecutive time as the markets remain subdued due to woes regarding the sluggish global economic recovery and expected weak demand levels in the US, while investors await the US housing data later today which is also expected week.|
Crude today traded below $73 per barrel recording its highest around $73.02 and lowest around $72.13, while it currently is trading around $72.44 per barrel.
The worse than expected economic data has led to investors to resort to the US dollar as a safe haven, thereby reflecting on the currency’s performance in front of a basket of major currencies; the dollar index recorded its highest levels in three weeks, recording its highest till now around 83.51 and lowest around 83.18, while currently trading around 83.44.
Crude yesterday traded above $74 per barrel recording its highest around $74.44 and lowest around $72.73 per barrel, closing around $72.87 per barrel. It shed $0.72 or 0.98%, as we await for the release of the US housing, alongside pessimistic sentiment throughout markets regarding uncertainties over the global economic recovery.
Meanwhile, markets await the release of the API report today that is expected to show US crude inventory levels last grew; however, the pessimism overshadowing investors in the market comes alongside the end of the summer season and holidays, which usually witnesses a rise in oil inventories although this season had shown weak demand from the second largest energy consumer in the world.
As for NYMEX as of 03:30 EST; motor gasoline fell to $186.430 per gallon to record $0.89; heating is trading around $194.050 per gallon losing $0.76; whereas natural gasoline was flat around $4.066. In London, Brent futures lost $0.88 to record $72.970.