|News||Crude drops amid Chinese growth woes|
|Analysis||Crude traded below $90 per barrel today following yesterday's figures from China and expectations for the nation to aggressively tame its economic growth to contain inflation.|
Crude today hovers below $90 per barrel recording its highest around $90.19 and lowest around $89.35, while it currently is trading around $90.14 per barrel.
The largest energy consumer in the world, China, is expected to raise interest rates to combat the high inflationary, as traders fear that the government will attempt to control increasing living costs by introducing new measures.
Crude yesterday traded around $90 per barrel recording its highest around $91.77 and lowest around $88.89 per barrel, closing around $89.39 per barrel. Futures dropped yesterday due to the restrained prices from growing stockpiles in the US, recording their highest average in five years and thereby indicating that demand on commodities remains moderate.
The US Energy Department yesterday showed an increase in inventories by 2.62 MB to reach 335.7 million last week, higher than the forecasted 0.9 MB drop. Meanwhile, the IEA reported that global demand is expected to rise by 1.4 MB per day to 89.1 million this year.
As for NYMEX as of 04:59 EST; motor gasoline rose $0.79 recording $244.170 per gallon; heating is trading around $264.710 per gallon inclining $0.91; whereas natural gasoline gained $0.53 to record $4.720. In London, Brent futures climbed $0.67 to record $97.230.