Fundamental Oil Report (2010-12-03)

By @ibtimes on

NewsCrude climbed near $88 amid growing demand and European debt containmentPreviousForecastAnalysisCrude traded above $88 per barrel today as traders’ are optimistic regarding stronger demand on oil and the European sovereign debt crisis’ containment, specifically after following the black gold’s immense losses in the past few weeks.

Crude today hovers around $88 per barrel recording its highest around $88.00 and lowest around $87.46, while it currently is trading around $87.65 per barrel.

Optimistic signs are currently prevalent in markets, where positive data from the US and China has spurred attention on crude and thus impacting demand. 

Crude yesterday traded around $87 per barrel recording its highest around $88.10 and lowest around $86.27 per barrel, closing around $87.96 per barrel. Crude climbed despite of the dollar also strengthening against the euro following improved manufacturing data in the US and China, as confidence is yet again prominent in US due to job gains in small industries and thereby increasing workforce productivity in order to increase global economic recovery. Meanwhile, investors’ are still closely eyeing the Korean peninsula as tensions unravel and accordingly effecting demand for safe-haven assets, although Europe is still struggling to contain the spreading debt crisis.

The ECB calmed market woes after deciding yesterday to extend the availability of emergency loans by leaving rates unchanged at 1.00%, while providing unlimited cash for the first quarter of next year; thereby increasing uncertainty regarding the future outlook for the economy.

As for NYMEX as of 03:51 EST; motor gasoline shed $0.60% recording $234.110 per gallon; heating is trading around $244.600 per gallon declining $0.35; whereas natural gasoline dropped $0.09 to record $4.339. In London, Brent futures fell $0.21 to record $90.500.

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