|News||Crude trades below $73 amid weak economic recovery|
|Analysis||Crude traded below $73 per barrel today recording its third consecutive decline after the two-day gains, as sluggish US manufacturing bolsters weak economic recovery following stocks’ decline.|
Crude today traded below $73 per barrel recording its highest around $73.36 and lowest around $72.95, while it currently trading around $73.16 per barrel.
Moreover, markets are anxiously awaiting for the release of the US GDP for the second quarter, where growth is expected to be revised down to 1.4% from the prior estimate of 2.4%; however, If fears are reassured regarding the second largest energy consumer in the world, it will signal that the global economic recovery is slowing.
Crude yesterday traded above $73 per barrel recording its highest around $73.94 and lowest around $72.52 per barrel, closing around $73.08 per barrel. It managed to gain $0.84 or 1.2%, with a weak US dollar alongside pessimistic sentiment throughout markets regarding uncertainties over global economic recovery.
The dollar fell for the third consecutive day according to the dollar index, where it opened today around 82.88 recording its highest around 83.03 and lowest around 82.82, currently trading around 82.86 as the transverse direction dominated before the release of the data.
In addition, the dollar’s weakness did not support crude’s major surge since the rise in US inventory levels sparked fears regarding demand levels no crude; whereas the EIA report showing high stockpiles by 4.11 MB as overall inventories reached 358.3 MB, thus pointing to a slight rise by 0.5 MB as fuel inventories inclined by 2.27 MB to reach 225.6 MB higher than prior estimates of 450 thousand barrels.
As for NYMEX as of 05:01 EST; motor gasoline fell to $189.830 per gallon to record $0.53; heating is trading around $199.960 per gallon shedding $0.48; whereas natural gasoline also climbed by $0.10 to record $3.821. In London, Brent futures declined $0.41 to record $74.710.