|News||Crude advances above $89 ahead of US supplies|
|Analysis||Crude traded above $89 per barrel today as traders’ anxiously await the weekly US crude inventories status report since a drop would signal improvement in demand, alongside speculations of higher crude levels next year.|
Crude today hovers around $89 per barrel recording its highest around $89.71 and lowest around $89.13, while it currently is trading around $89.67 per barrel.
The US Energy Department is expected to announce inventory numbers later on today, where inventories are likely to have dropped 2.4 MB last week; while the EIA is to be released tomorrow and are forecasted to have also shed 9.9 MB the previous week, largest drop in eight years.
Crude yesterday traded around $88 per barrel recording its highest around $89.55 and lowest around $87.71 per barrel, closing around $89.19 per barrel. Futures rose 77 cents yesterday, as the dollar weakened against the euro as investors’ are more optimistic about the containment of the European debt crisis and demand on oil in 2011, thereby raising the appeal of commodities; although a cold spell has gripped Europe and US and spreading some woes throughout the world, traders are still optimistic about crude demand which is keeping the upside bias.
As for NYMEX as of 04:43 EST; motor gasoline rose $0.42 recording $238.790 per gallon; heating is trading around $249.450 per gallon adding $0.20; whereas natural gasoline shed $0.38 to record $4.221. In London, Brent futures gained $0.17 to record $92.900.