|News||Crude trades below $89 as cold weather spurs demand|
|Analysis||Crude traded below $89 per barrel today near a four-day high as traders’ eye US crude inventory figures searching for signs of improving demand, while the cold wave moving through the US spreads optimism on fuel demand boost.|
Crude today hovers around $88 per barrel recording its highest around $88.87 and lowest around $88.11, while it currently is trading around $88.84 per barrel.
The US Energy Department will release its figures later on today; inventories are likely to have fallen 3 MB last week. Meanwhile, traders’ also await the EIA figures tomorrow.
Crude yesterday traded around $88 per barrel recording its highest around $89.45 and lowest around $87.43 per barrel, closing around $88.16 per barrel. Futures rose yesterday as the dollar traded lower against its counterparts ahead of the FOMC decision today on speculation the Feds will reflect their willingness to increase debt purchases further than the already announced $600 billion.
Meanwhile, the cold weather sweeping Europe and US was declared a state of emergency in Florida, as the cold is damaging crops yet pushing higher demand on crude.
On our economic agenda today, we await the Fed’s FOMC decision as expectations are for steady rates around 0.0% - 0.25%, it’s lowest since the bank’s foundation. The decision will have a large impact on financial markets.
As for NYMEX as of 03:50 EST; motor gasoline fell $0.09 recording $231.620 per gallon; heating is trading around $247.100 per gallon inclining $0.24; whereas natural gasoline shed $0.18 to record $4.412. In London, Brent futures gained $0.33 to record $91.490.