|News||The EIA Report|
|Analysis||Crude today continued to trade below $72 per barrel due to ongoing global economic fears gripping markets, alongside stock plunge at an alarming pace yesterday.|
Crude today traded below $72 per barrel recording its highest around $72.34 and lowest around $71.33, while it currently is trading around $72.16 per barrel.
Moreover, increasing fears regarding the fragile pace of global growth, like in the US, is the main factor affecting the worse than expected drop in home sales throughout the country, which was the main supported of the global financial crisis bubble that burst two years ago.
Crude yesterday traded below $73 per barrel recording its highest around $73.02 and lowest around $71.31 per barrel, closing around $71.46 per barrel. It lost $1.47 or 2.01% recording its lowest level in almost ten weeks, with worse than expected US housing data and rising crude inventory levels, alongside pessimistic sentiment throughout markets regarding uncertainties over the global economic recovery.
The API report was released yesterday showing a rise in crude inventory levels last week by 692 thousand barrels to reach 226.2 MB; whereas the previous week inventory levels dropped by 1.85 MB to reach 356.8 MB. However, we await for the EIA report to be release its weekly report today, where expectation show that inventory levels will gain 0.5 MB.
On the other hand, stock markets are presently jittery due to the major drop witnessed yesterday, thus continuing the pessimistic cycle dominating investors’ confidence in markets.
As for NYMEX as of 04:00 EST; motor gasoline rose to $186.300 per gallon to record $0.74; heating is trading around $195.500 per gallon gaining $1.00; whereas natural gasoline climbed by $0.07 to record $4.042. In London, Brent futures gained $1.05 to record $73.140.