|Previous||3.78 Million Barrels|
|Forecast||1.7 Million Barrels|
|Analysis||Oil started the day with correctional movements in the Asian session rebounding from the lowest in three months, at the time when the dollar depreciated against other major currencies, along with the relative improvement in U.S. inventory levels.|
Crude oil futures for June settlement opened today at $97.57 a barrel recording the intraday high so far at $98.00 and the low at $97.46 a barrel, and currently trading at $97.83 with a rise of $0.92 or by 0.95% a barrel.
At the end of yesterday’s trading the contract closed with a decline of $0.46 or by 0.47% ending trading at $96.91 a barrel.
The American Petroleum Institute (API) a drop in gasoline inventory in the previous week by 6.76 thousand barrels, whereas expectations were indicating a rise of 800 thousand. Distillate inventories dropped by 2.8 million barrels opposed to the expected rise of 700 thousand barrel. The data helped support oil prices in the early trading today, although it showed an increase in crude oil inventories by 2.7 million barrels last week.
Also the drop in the U.S dollar index boosted oil from its lows, as it is trading lower for the third consecutive day hovering around 75.21 levels after recording the intraday high at 75.33 and the low at 75.12.
U.S data yesterday showed an unexpected drop in the building permits in April to 551 thousand permits from 574, in addition to the stability in the industrial production in the country in the same period, having achieved a growth rate of 0.7% in the previous month, which gives signs of weakness in the pace of recovery in the largest economy in the world.
Today, we’re expecting important data that may affect the movements during today’s trading, starting with the EIA Report as it expected to show a rise in the crude oil inventory by 1.7 million barrels in the previous week compared to the previous reading 3.78 million barrels.
Also, the FOMC minutes will be released for the previous meeting which might affect the dollar as it reiterates the feds stance on low interest rates.