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The EIA Report

 

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0.9 Million Barrels

 

Forecast

2.6 Million Barrels

 

Analysis

Crude pares losses below $86 per barrel today with a week filled with mixed data and prospects for OPEC increasing production, alongside China’s rise in demand forecasts.

Crude today hovers around $86 per barrel recording its highest around $86.72 and lowest around $86.18, while it currently trading around $86.68 per barrel.

OPEC has recently contributed to the drop witnessed this week since traders currently think that crude is too pricey and could harm future global economic growth, where could mean that other members of the organization can expect a rise in oil production in order to bring down prices.

Crude yesterday traded around $87 per barrel recording its highest around $87.82 and lowest around $86.10 per barrel, closing around $86.18 per barrel. Futures fell yesterday as the dollar rose due to mixed data, alongside recent OPEC hints to increase supply to meet growing demand.

The US Energy Department is expected to release the supply data today, where inventories probably rose by 2.6 MB; gasoline also is expected to have risen 2.3 million.

Moreover, China managed to maintain growth volume and it is expected to increase processing by 7.5% this year, which could positively impact black gold and help it rise.

As for NYMEX as of 04:56 EST; motor gasoline rose $1.27 recording $237.250 per gallon; heating is trading around $263.280 per gallon inclining $1.54; whereas natural gasoline also climbed $0.49 to record $4.495. In London, Brent futures rose $1.29 to record $96.480.