NewsThe EIA Report
Previous1.9 Million Barrels
Forecast1.8 Million Barrels
AnalysisCrude traded above $85 per barrel today following the unexpected plunge in US supplies last week, thereby suggesting that demand could be improving in the world’s second largest energy consumer as traders await for the weekly supply data later on today.

Crude today hovers around $85 per barrel recording its highest around $84.89 and lowest around $84.34, while it currently is trading around $84.77 per barrel.

The API yesterday showed that oil supplies fell by 354 thousand barrels last week, lower than forecasts of an increase of 2.8 MB; distillates including heating slipped 1.2 barrels, while inventories rose 1.2 million.

Traders are currently eyeing the EIA’s data that is scheduled to be released later on today, where stockpiles are expected to have increased 1.80 MB last week as inventories rose from 124 MB to 241 million.

Crude yesterday traded around $85 per barrel recording its highest around $85.94 and lowest around $83.83 per barrel, closing around $84.34 per barrel. Futures fell yesterday due to optimistic US inventory data proving that demand is improving in the largest global energy consumer, thereby boosting economic recovery.

Meanwhile, political tension in the Middle East recently witnessed a new round of protests in Libya, where hundreds of people gathered in Benghazi protesting the government and calling for democracy.

As for NYMEX as of 04:25 EST; motor gasoline rose $0.45 recording $250.000 per gallon; heating is trading around $274.650 per gallon inclining $0.64; whereas natural gasoline shed $0.10 to record $3.972. In London, Brent futures climbed $0.83 to record $102.480.