|News||Crude hovers below $92 as economic recovery speculation strengthens demand|
|Analysis||Crude traded below $92 per barrel today near a 27-month high as the stock market rally boosted optimism and therefore the appeal of commodities and crude.|
Crude today hovers around $91 per barrel recording its highest around $91.68 and lowest around $91.27, while it currently is trading around $91.50 per barrel.
Black gold futures rose by 0.2% yesterday after US data showed an improvement in the manufacturing sector last month and for the seventh consecutive month, while construction spending also followed and inclined more than expected.
Crude yesterday traded around $91 per barrel recording its highest around $92.54 and lowest around $91.21 per barrel, closing around $91.52 per barrel. Futures rose 17 cents yesterday as the greenback fell and thereby reducing consumer confidence, while investors await for the release of oil stockpiles data later on today.
Moreover, investors anticipate the Energy Department's API report later on today, where supplies are expected to have dropped 1.75 MB from 339.4 million; gasoline is also expected to have increased 50 thousand barrels from 214.9 MB, while distillates including heading headed upwards rising 625 thousand barrels from 161 MB. The EIA report is expected to be released tomorrow.
Several absent European economies yesterday due to the New Year holiday was noted in markets as trading volumes remained fragile, although they have returned today and stronger than ever as we await for jobs data from Germany and credit and manufacturing from the United Kingdom.
As for NYMEX as of 04:49 EST; motor gasoline fell $0.05 recording $242.600 per gallon; heating is trading around $255.700 per gallon inclining $0.16; whereas natural gasoline gained $0.43 to record $4.670. In London, Brent futures climbed $0.22 to record $95.050.