Fundamental Oil Report (2011-03-02)

By @ibtimes on

NewsThe EIA ReportPrevious0.8 Million BarrelsForecast1.0 Million BarrelsAnalysisCrude traded above $100 per barrel today as US supplies and gasoline supplies showed a surprising drop last week, signaling that demand is improving, while traders still eye Libya as violence and fighting continues.

Crude today hovers around $100 per barrel recording its highest around $100.55 and lowest around $99.20, while it currently trading around $99.99 per barrel.

The API yesterday reported a drop in inventories by 1.1 million barrels, bettern than forecasts of an increase of 1.6 MB; gasoline also fell 4.9 MB, while distillates followed and dropped by 1.4 MB. We anxiously await today’s EIA report scheduled to be released later on in the day, which may show a rise in inventories of 750 thousand barrels from 346.7 MB.

Crude yesterday traded around $100 per barrel recording its highest around $100.66 and lowest around $96.40 per barrel, closing around $100.57 per barrel. Futures fell early trading yesterday due to Saudi Arabia, the world’s largest crude exporter, agreeing to pump more oil to cover the shortage caused by Libya’s cuts.Nevertheless, the contract for April settlement still ended with about 2.7% gain the highest close since September 2008. 

Moreover, current underlying fear is still lingering in markets due to the chaos in the Middle East and North Africa as Libya continues witnessing fighting between supporters and opponents of leader Muammar Gaddafi. This led to oil production to be cut by half from the OPEC nation, while traders fear that political unrest could further spread to other countries in the region.

As for NYMEX as of 05:01 EST; motor gasoline rose $0.41 recording $299.550 per gallon; heating is trading around $302.590 per gallon inclining $0.08; whereas natural gasoline gained $0.23 to record $3.882. In London, Brent futures gained $0.11 to record $115.550.

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