NewsThe EIA ReportPrevious-9.9 Million BarrelsForecast-3.4 Million BarrelsAnalysisCrude traded above $90 per barrel today as US inventories drop more than expected for the second consecutive week, reflecting a pickup in demand as traders await the EIA report later on today.
Crude today hovers around $90 per barrel recording its highest around $90.26 and lowest around $89.83, while it currently is trading around $90.19 per barrel.
The US Energy Department yesterday said crude inventories dropped 5.8 MB more than the forecasted drop of 2.4 MB last week; gasoline also fell 2.9 MB, while distillates slightly climbed. Meanwhile, traders anticipate today’s EIA report as analysts expect the drop to continue into the third consecutive week and thereby reflecting improvement in demand levels by 3.4 MB, compared to the previous week’s 9.9 MB, the biggest drop in eight years!
Crude yesterday traded around $90 per barrel recording its highest around $90.07 and lowest around $89.04 per barrel, closing around $90.01 per barrel. Futures rose 45 cents yesterday, as investors’ are more optimistic about inventory levels and containment of the European debt crisis and demand on oil, thereby raising the appeal of commodities.
Signs of ongoing global recovery has supported the risk appetite and demand on crude as the market shuns the negativity as we head into the last week of the year amid low holiday volumes.
As for NYMEX as of 04:25 EST; motor gasoline rose $0.65 recording $241.420 per gallon; heating is trading around $252.450 per gallon inclining $0.32; whereas natural gasoline gained $0.25 to record $4.069. In London, Brent futures climbed $0.35 to record $93.530.