NewsCrude oi is taking a negative side
Previous
Forecast
AnalysisCrude oil started a new downside journey after it recovered its losses yesterday, despite the rise in US inventories for an unexpected figure, but volatility is the status for crude nowadays amid closed positions at the end of the year and high uncertainty.

It’s extremely obvious that any minor factor could have a huge effect on crude, as lack of traders are intervening in markets at the end of the year, which raised more fluctuations and made volatility the status of crude.

After crude declined yesterday it struggled and erased the losses incurred earlier, despite the rise in US inventories, which indicated that the demand is not as much as expected for the previous week.

Crude oil opened today’s session at $99.75 and reached a high of $100.13 and declined to a low of $99.24, and it is currently trading around $99.52.

The EIA report showed yesterday the U.S commercial crude oil inventories decreased by 3.9 million barrels from the previous week. At 327.5 million barrels, U.S. crude oil inventories are in the upper limit of the average range for this time of year. Total motor gasoline inventories decreased by 0.7 million barrels last week and are upper limit of the average range.

Whereas finished gasoline inventories increased and blending components inventories decreased last week. Distillate fuel inventories increased by 1.2 million barrels last week and are in the lower limit of the average range for this time of year.

On the other hand, the US dollar is affecting crude heavily amid lack of fundamentals and low volume of trading, where the dollar is rising today, which added negative pressures on the commodity, as it opened the session at 80.34 and recorded so far a high of 80.59 and a low of 80.33, and it is currently trading around 80.50.

yesterday, Italy sold just over 7 billion euros of debt due in 2014 and 2022 yet yields on the 10-year bonds continues to be near 7%, where above 7% is the level where other euro zone governments were forced to seek bailouts. 

Volatility and heavy fluctuations are expected to dominate the market today with the lack of critical fundamentals from major economies and at the end of the year which force investors to close their positions to avert any unexpected losses.