Fundamental Oil Report (2011-03-04)

By @ibtimes on

NewsCrude gains heading into its third weekPreviousForecastAnalysisCrude traded above $103 per barrel today as fierce fighting continues in Libya, while investors’ woes increase regarding the crude output cut in the OPEC nation.

Crude today hovers around $102 per barrel recording its highest around $103.00 and lowest around $101.53, while it currently is trading around $102.75 per barrel.

The political upheaval continues in the Middle East, where yesterday rebels yesterday in Libya heightened security around oil refineries in Brega as Gaddafi loyalists and recruited naboring Malian mercenaries bombed a nearby port city. Meanwhile, Obama restated and stressed on Gaddafi’s resignation in his recent speech.

Crude yesterday traded around $101 per barrel recording its highest around $102.91 and lowest around $100.15 per barrel, closing around $101.66 per barrel. Futures skyrocketed yesterday due to ongoing unrest in Libya and now spreading to Saudi Arabia, the world’s largest crude exporter, which has previously agreed to pump more oil to cover the shortage caused by Libya’s cuts; thus, leading to the sudden boost in oil prices which could eventually threaten global growth.

Trading remains very volatile at this time ahead of the infamous jobs report from the United States. The recovery in the US is seemingly broadening with the expected 196 thousand jobs added in February, the most since May.

The recovery and the confined cold weather boosted hiring in the US as investors grow more optimistic over the outlook for growth which is gradually offsetting the fears in Libya with Venezuela offering to mediate talks in Libya to restrain blood shed and bring back stability in the violence torn nations.  

As for NYMEX as of 04:14 EST; motor gasoline fell $0.62 recording $304.490 per gallon; heating is trading around $307.960 per gallon inclining $0.99; whereas natural gasoline shed $0.45 to record $3.761. In London, Brent futures shed $1.06 to record $116.8010.

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