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The EIA Report

 

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-4.2 Million Barrels

 

Forecast

0.4 Million Barrels

 

Analysis

Crude traded above $91 per barrel today after US inventory reports showed higher than expected rise in supplies and thereby suggesting a pickup in demand on oil, as traders anticipate the release of the weekly supply data later on today from the second largest energy consumer in the world.

Crude today hovers around $91 per barrel recording its highest around $91.70 and lowest around $91.06, while it currently is trading around $91.62 per barrel.

The American Petroleum institute yesterday showed that inventories unexpectedly climbed 7 MB compared to the prior forecast of 2.9 MB last week, rising by 57 thousand barrels; while distillates including heating added 1.5 MB.

On our economic agenda today, traders anxiously await the US Energy Department to release the weekly supply report later on today.

Crude yesterday traded around $89 per barrel recording its highest around $91.36 and lowest around $88.91 per barrel, closing around $91.19 per barrel. Futures climbed yesterday due to sudden jump in supply levels amidst new development from Alaska pipeline leak, where Alyeska Pipeline Service Co. received permission to temporarily restart oil production to prevent ice from forming amid freezing winter temperatures and thereby sparking optimism that is expected to positively affect demand levels on oil.

Moreover, Japan has recently announced plans to join China in purchasing European long-term government bonds, in order to support the dwindling situation European countries are witnessing in their economies. This comes after the external aid request sent to the EU and IMF requesting assistance, similar to what Ireland and Greece had done.

As for NYMEX as of 04:32 EST; motor gasoline fell $0.17 recording $247.410 per gallon; heating is trading around $261.930 per gallon inclining $0.40; whereas natural gasoline added $0.65 to record $4.510. In London, Brent futures gained $0.69 to record $98.280.