|News||Crude hovers above $90 supported by a rise in US inventories|
|Analysis||Crude traded above $91 per barrel amid stock market rally boosting optimism regarding improving demand on oil, alongside the drop in US inventories.|
Crude today hovers around $90 per barrel recording its highest around $90.76 and lowest around $90.21, while it currently is trading around $90.52 per barrel.
The weekly anticipated EIA report yesterday showed US supplies fell by 5.3 MB from the previous week recording 340.7 MB, the biggest drop in eight years, above the upper limit of the average range for this time of year. Meanwhile, motor gasoline climbed 2.4 MB as distillates fell by 0.6 MB but remain within the upper average range.
Crude yesterday traded around $90 per barrel recording its highest around $90.77 and lowest around $89.83 per barrel, closing around $90.58 per barrel. Futures rose 66 cents yesterday, and since crude is highly connected to the direction of the equities markets confidence in a global recovery will be expected, as investors’ are more optimistic about inventory levels and thereby effecting demand on commodities.
As for NYMEX as of 04:27 EST; motor gasoline fell $0.31 recording $241.700 per gallon; heating is trading around $252.600 per gallon declining $0.10; whereas natural gasoline lost $1.61 to record $4.085. In London, Brent futures shed $0.20 to record $93.460.