|News||Crude hovered above $91 as US inventories are expected to drop|
|Analysis||Crude traded above $91 per barrel amidst speculations that US inventories declining last week, while the greenback is expected to extend the losses amid weak housing data today and strong sentiment which is keeping the dollar weak amid thin trades.|
Crude today hovers around $91 per barrel recording its highest around $91.31 and lowest around $90.74, while it currently is trading around $91.06 per barrel.
Traders are awaiting the release of the API report today, where the second largest energy consumer in the world is expected to show a drop in inventories by 3 MB from 340.7 million last week recording its fourth consecutive decline this month, thus boosting the appeal of crude. Meanwhile, investors are awaiting for the release of the EIA report tomorrow.
Crude yesterday traded around $91 per barrel recording its highest around $91.86 and lowest around $90.49 per barrel, closing around $90.70 per barrel. Futures lost 51 cents or 0.4% yesterday as the greenback climbed and since crude is highly connected to the direction of equities markets confidence in a global recovery will be expected, and thereby effecting demand on commodities.
Moreover, US gasoline supplies are expected to have risen by 1.9 MB to 217.2 million after snowstorms have overwhelmed cities in the largest energy consumer, effecting transportation and thus demand on gas.
As for NYMEX as of 04:41 EST; motor gasoline fell $0.16 recording $241.700 per gallon; heating is trading around $252.040 per gallon inclining $0.15; whereas natural gasoline lost $0.92 to record $4.074. In London, Brent futures shed $0.01 to record $93.840.