|News||Crude hovers around $73 as sharp losses attract more buyers|
|Analysis||Crude traded above $73 per barrel today as stock markets managed to rise off lows, alongside the steep losses by crude oil that attracted more investors; while also keeping the support is as hurricane season is introduced to storm number five, Earl.|
Crude today traded above $73 per barrel recording its highest around $73.29 and lowest around $72.52, while it currently is trading around $73.16 per barrel.
The rebound witnessed by crude came in line with gas prices dropping as investors started to purchase crude to avoid losses and cover bets, specifically at a time where the global economic recovery is sluggish.
Meanwhile, the EIA report was bearish as US equities managed to rebound from the four day losing streak. Crude stockpiles rose 4.11 MB to 358.3 MB last week, where inventories this week were forecasted to climb by 300 thousand barrels; gasoline also gained by 2.27 MB to 225.6 MB this week.
Crude yesterday traded below $73 per barrel recording its highest around $72.94 and lowest around $70.74 per barrel, closing around $72.88 per barrel. It added $0.89 or 8.5, with worse than expected US housing data and the drop in crude inventory levels, alongside pessimistic sentiment throughout markets regarding uncertainties over global economic recovery.
On the other hand, the tropical season is affecting crude as the newest storm Earl, the fifth storm hitting the Atlantic region this year, thereby affecting production rates in the Gulf of Mexico by pressuring crude to the downside.
As for NYMEX as of 05:00 EST; motor gasoline rose to $188.400 per gallon to record $1.08; heating is trading around $198.400 per gallon gaining $0.68; whereas natural gasoline also climbed by $0.26 to record $3.881. In London, Brent futures rose $1.06 to record $74.260.