Fundamental Oil Report (2011-02-10)

By @ibtimes on

NewsCrude slides below $87 as OPEC increases crude output and US supplies increasePreviousForecastAnalysisCrude traded below $87 per barrel today after reports showed that OPEC icnreased crude output in January to reach its highest in two years, following optimistic signs of growing global demand on oil and US supplies yesterday increased.

Crude today hovers around $87 per barrel recording its highest around $87.04 and lowest around $85.95, while it currently is trading around $86.01 per barrel.

OPEC reported increased production by 1% last month to average 29.57 MB per day, but maintained official crude production quotas unchanged; although oil has risen to its two-year high above $92 last week. Meanwhile, skyrocketing recent prices are increasing inflation and undermining global economic recovery.

Crude yesterday traded around $87 per barrel recording its highest around $87.92 and lowest around $86.34 per barrel, closing around $86.77 per barrel. Futures fell yesterday due to high inventory data reported by the EIA, alongside waned concerns over the ongoing political unrest in Egypt.

Moreover, the US Energy Department yesterday showed that supplies increased 1.9 MB to 345.1 million last week, lower than forecasts of 2 MB; gasoline advanced to 240.9 million and distillates including heating also followed and climbed 288 thousand barrels to 164.4 million.

As for NYMEX as of 04:48 EST; motor gasoline fell $0.41 recording $251.560 per gallon; heating is trading around $275.370 per gallon declining $0.55; whereas natural gasoline gained $0.02 to record $4.045. In London, Brent futures shed $0.12 to record $101.700.

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