|News||Crude drops from its 26 month high on prevailing market jitters|
|Analysis||Crude fell to record its first decline in five days today due to concerns regarding European officials disagreement on ways to contain the sovereign debt crisis the continent is facing, and thereby directly threatening growth potential.|
Crude today hovers around $89 per barrel recording its highest around $89.52 and lowest around $88.78, while it currently is trading around $89.35 per barrel.
The recent drop witnessed by black gold is due to concerns over European officials disagreeing on ways to contain the sovereign debt crisis gripping the region and spreading to other countries within the continent, posing a direct threat to growth. Hungary was added onto the list due concerns over the government’s policy unsustainable temporary measures to fill in its current budget holes, where its credit rating was cut two steps by Moody’s Investors Service to Baa3, recording its lowest investment rate, signaling that eastern Europe is also suffering more instabilities.
Crude yesterday traded around $89 per barrel recording its highest around $89.73 and lowest around $88.54 per barrel, closing around $88.81 per barrel. Crude climbed yesterday as weather forecasts in US and Europe still signal the extending cold wave, thereby pushing futures up gaining 3 cents.
Moreover, the Energy Department is anticipated to release its API report later on today and expectations are for a drop in inventories by 1.5 MB from 359.7 million last week. Investors await tomorrow’s EIA report.
As for NYMEX as of 04:05 EST; motor gasoline climbed $0.09% recording $234.380 per gallon; heating is trading around $247.850 per gallon inclining $0.11; whereas natural gasoline rose $0.56 to record $4.513. In London, Brent futures shed $0.08 to record $91.380.