|News||Oil below $92 as improved demand pushes it upwards|
|Analysis||Crude traded slightly below $92 per barrel today on improved sentiment and demand expectations as crude lingers high still near the strongest since October 2008. |
Crude today hovers around $91 per barrel recording its highest around $92.11 and lowest around $91.59, while it currently is trading around $91.66 per barrel.
The US Energy Department released its EIA report yesterday, where it showed a sudden drop in crude supplies by 2.2 MB to reach 333.1 MB last week, lower than the previously expected 300 thousand barrels. The plunge witnessed by black gold for the past six consecutive weeks suggests that consumption rates are stronger than expected within the second largest energy consumer in the world.
Crude yesterday traded around $91 per barrel recording its highest around $92.36 and lowest around $90.78 per barrel, closing around $91.94 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, although oil continues to seep into the bottom of pump in the building near the station and a bypass pipe that is expected to be built to dodge the leak could take a few days to be built, thereby sparking optimism that is expected to positively affect demand levels on oil.
On our economic agenda today, traders anxiously await for the European Central Banks to announce their interest rate decision with the BoE at 12:00 GMT and the ECB and 12:45 GMT.
As for NYMEX as of 05:11 EST; motor gasoline rose $0.03 recording $246.390 per gallon; heating is trading around $261.650 per gallon declining $0.08; whereas natural gasoline shed $1.10 to record $4.481. In London, Brent futures gained $0.30 to record $98.410.