|Previous||2.3 million barrels|
|Forecast||1.5 million barrels|
|Analysis||Crude oil fell for the fourth day as the signs of a slowing U.S. economy indicate that demand on oil from the world’s largest oil consumer will falter, markets fell despite that President Barack Obama signed legislation yesterday that will cut federal spending by $2.1 trillion or more over the next decade, in addition Moody’s Investors Service assigned a negative outlook for the Aaa rating, in addition to the EIA report which will be released today.|
Light sweet crude oil opened today at $93.25 a barrel recording the intraday high at $93.58 a barrel and a low of $92.83 a barrel and is currently trading around $93.04 a barrel.
Also a strengthening dollar may be an additional reason for the crude to fall as the dollar surged yesterday and now it’s trading within a narrow range as the USDIX opened today at 74.45 recording the highest at 74.68 and the lowest at 74.34 and is currently trading around 74.38.
President Barack Obama signed into law a bill to raise the country's $14.3 trillion borrowing limit yesterday, after U.S Senate gave final approval on a debt-ceiling compromise. On Monday The U.S House passed the deficit reduction measure by 269-161 vote, and then was followed with U.S Senate passing the compromise measure by 74-26 vote, which imposes to raise the debt-limit by at least $2.4 trillion and shave government spending by almost $2.5 trillion over the next decade.
On the other hand, rating agencies kept concerns somehow evident, where although Moody's Investors Services and Fitch Ratings confirmed their triple-A ratings to the U.S, Moody's assigned a negative outlook for the U.S debt rating, while pointing U.S. debt rating could be vulnerable to potential downgrade unless lawmakers pursue debt reduction measures and economy strengthens.
Yesterday the Department of Commerce reported a gloomy income report which was already expected as this past period overall economic conditions weakened along with ongoing high jobless levels weighting on all of the economy's sectors.
Also, the American Petroleum Institute yesterday said crude stockpiles declined 3.31 million barrels last week to 354.9 million, while gasoline supplies increased 2.55 million barrels to 212.2 million.
Today the energy department report or the EIA report will be released and expected to show that crude inventories climbed 1.5 million barrels.