|News||Crude trades above $108 over concerns over high fuel costs|
|Analysis||Crude traded above $108 per barrel today over concerns regarding the rising fuel costs that could dent economic growth in the US and demand on oil.|
Crude today hovers around $108 per barrel recording its highest around $108.86 and lowest around $108.21, while it currently is trading around $108.81 per barrel.
Total US inventories yesterday rose, according to the EIA report, 1.95 million barrels lower than forecasts of a 2 MB high; while, stockpiles the previous week slipped by 16 thousand barrels to record 41.9 million. Gasoline inventories managed to shed 357 thousand barrels to 216.7 million last week, following prior forecasts of a drop by 1.9 MB, while distillates including heating gained 195 thousand barrels to 153.5 million.
Crude yesterday traded around $108 per barrel recording its highest around $109.12 and lowest around $108.21 per barrel, closing around $108.58 per barrel. Futures yesterday jumped as the dollar weakened, following China’s interest rate hike to curb inflation along with high inventories in biggest energy consumer in the world that in turn is negatively impacting economic recovery.
Traders are jittery due to the Libyan conflict in North Africa, where crude has risen to trade around $108 this week following a weaker US dollar and China’s fourth consecutive rate hike since October. Furthermore, woes concerning the 29 percent jump crude prices since February remain high since traders’ fear this price rises will force consumers to spend more on fuel and thus reducing demand.
As for NYMEX as of 04:13 EST; motor gasoline fell $0.15 recording $318.800 per gallon; heating is trading around $318.770 per gallon declining $0.11; whereas natural gasoline shed $0.80 to record $4.113. In London, Brent futures dropped $0.25 to record $122.000.