|News||The EIA Report|
|Previous||1.3 Million Barrels|
|Forecast||4.7 Million Barrels|
|Analysis||Crude slightly rose today after positive data was released regarding the Chinese manufacturing sector showing better than expected growth, alongside an economic expansion in Australia in the second quarter; thereby reducing jitters regarding growth and demand on crude.|
Crude today traded above $72 per barrel recording its highest around $72.53 and lowest around $71.67, while it currently is trading around $72.13 per barrel.
The rise in US crude inventories reflected how weak demand is within the biggest energy consumers in the world, where the API yesterday reported a rise in crude inventories by 4.7 MB; whereas market expectations pointed to a rise by 1.9 MB, where the EIA is expected to report its weekly inventory status report later on today; expectations point to a rise in inventories by 1.3 MB.
On the other hand, the Feds minutes did not provide much new entries to the current state other than reiterating their readiness to act and support growth.
Crude yesterday traded above $74 per barrel recording its highest around $74.70 and lowest around $71.51 per barrel, closing around $71.65 per barrel. It dropped by $2.78, with a stronger US dollar as investors regard it as a hedge against inflation, alongside pessimistic sentiment throughout markets regarding uncertainties over global economic recovery.
Meanwhile, China regarded as the second largest energy consumer in 2009, reported expansion in the manufacturing sector for the eighth month, surpassing market expectations that had a positive effect although minor on crude movements today. In the meantime, the Australian economy expanded in the second quarter by 1.2% from 0.7% in the first quarter; thereby calming market jitters.
As for NYMEX as of 04:45 EST; motor gasoline rose to $186.510 per gallon to record $0.41; heating is trading around $200.320 per gallon gaining $0.58; whereas natural gasoline shed $1.05 to record $3.776. In London, Brent futures climbed $0.56 to record $75.060.