|News||Crude gains above $89 as supplies drop|
|Analysis||Crude is trading above $89 per barrel today since yesterday’s EIA reported stockpiles drop three times more than forecasts in the second largest energy consumer in the world, while the dollar weakened against major foreign currencies.|
Crude today hovers around $89 per barrel recording its highest around $89.39 and lowest around $88.48, while currently trading around $89.05 per barrel.
The US Energy Department yesterday reported a drop in inventories three times higher than forecasts down 3.81 MB to 214 MB last week, more than the expected 1.3 MB decline; distillates including heating also rose 2.2 MB to 160.2 MB.
Crude yesterday traded around $88 per barrel recording its highest around $88.96 and lowest around $87.32 per barrel, closing around $88.47 per barrel. Crude climbed yesterday as the dollar fell on optimism in the market and signs of rising global consumption. Expectations are for 85% of this year’s global demand growth will consist of 2.5 MB per day coming from developing countries, alongside the cold weather sweeping Europe and US and thereby pushing higher demand on crude.
On our agenda today, traders’ await US initial jobless claims to be released later on today where unemployment is forecasted to drop to 425 thousand from 436 thousand.
As for NYMEX as of 04:09 EST; motor gasoline rose $1.03% recording $232.840 per gallon; heating is trading around $247.680 per gallon inclining $0.65; whereas natural gasoline climbed $0.22 to record $4.616. In London, Brent futures gained $0.72 to record $91.420.