|News||Crude drops as warm weather offset US inventories plunge|
|Analysis||Crude traded below $89 per barrel today as the plunge in US inventories was offset by warmer weather concerns which might affect demand levels negatively.|
Crude today hovers around $88 per barrel recording its highest around $88.63 and lowest around $88.04, while currently trading around $88.38 per barrel.
The EIA showed that crude inventories had plunged 9.9 MB higher than the forecasted 3 MB last week, while distillates including heating also dropped 1.09 MB to 161.3 million.
Crude yesterday traded around $88 per barrel recording its highest around $89.05 and lowest around $86.82 per barrel, closing around $88.32 per barrel. Futures rose 34 cents, or by 0.4% yesterday, where the inventories data helped crude offset the dollar strength and reverse to the upside.
On the other hand, higher temperatures this week between 5 to 10 degrees Fahrenheit are spreading concerns due to its possible effect it may have on demand levels on black gold. So crude surrendered some of its gains this morning and traded softly ahead of key data from the US expected to support the positivity further.
As for NYMEX as of 04:22 EST; motor gasoline rose $0.07 recording $231.090 per gallon; heating is trading around $248.030 per gallon declining $0.13; whereas natural gasoline gained $0.05 to record $4.224. In London, Brent futures shed $0.01 to record $92.190.