Fundamental Oil Report (2011-03-17)

By @ibtimes on

NewsCrude hovers above $99 as traders eye Japan and Middle EastPreviousForecastAnalysisCrude traded above $99 per barrel today as Japan teeters on the edge of destruction at a damaged nuclear plant, while political clashes continue in Bahrain and Libya.

Crude today hovers around $99 per barrel recording its highest around $99.25 and lowest around $96.70, while it currently is trading around $99.22 per barrel.

The US Energy Department released its weekly EIA report showing a rise in inventories by 1.7 MB from the previous week above the upper limit of the average range of this time of year, while distillates including heating fell by 2.6 million.

Crude yesterday traded around $99 per barrel recording its highest around $99.55 and lowest around $96.21 per barrel, closing around $97.16 per barrel. Futures rose yesterday due to ongoing political turmoil in the Middle East heating up, while Japan’s nuclear woes are getting worse as one of plants is teetering on the brink of a meltdown.

Moreover, politics tensions continue in the Mid-East as clashes in Bahrain between security forces, including Saudi Arabia and other Gulf States, and anti-government protestors have left five dead and several others injured affecting markets with short-term demand losses. Saudi Arabia is the largest crude exporter in the world, where analysts’ fear that their interference in Bahrain could lead to deeper conflicts between Sunni and Iranian Shiite’s in the region.

As for NYMEX as of 05:43 EST; motor gasoline rose $1.10 recording $287.500 per gallon; heating is trading around $303.700 per gallon inclining $1.33; whereas natural gasoline climbed $0.99 to record $3.977. In London, Brent futures jumped $1.70 to record $112.480.

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