|News||Crude trading is mixed ahead of rate decisions in Europe|
|Analysis||Crude oil struggles amid mixed sentiment in Europe and rising demand in the world’s biggest oil consumer, as Europe remains stuck and waiting for final agreement from Greece problem which has been dragging for days.|
Crude oil opened today’s session at $99.08 and reached a high of $99.17 and a low of $98.64 where it is currently fluctuating around $98.91 a barrel.
Crude oil recorded a mild upside movement yesterday despite the disappointment after Greece and its parties delayed their decision on austerity measures that will secure a 130 billion Euros bailout to the nation as these measures are widely opposed by Greeks.
The bullish momentum seen for oil is supported by rising demand in world’s biggest oil consumer, the United States, as the EIA reported that U.S crude oil inventories increased by 0.3 million barrels from the previous week by 2.5 million barrels expectations where it rose by 4.2 million barrels in the previous reading, however, U.S. crude oil inventories remain in the upper limit of the average range for this time of year.
In addition, distillate fuel inventories increased by 1.2 million barrels last week and are in the middle limit of the average range for this time of year.
Crude oil is so volatile today with heavy earnings releases that are weighing on the market, but the volatility will be so high ahead of the rate decisions from Europe.
The two major central banks in Europe, ECB and BoE are due to announce their monetary stance amid deepening debt crisis and challenges that face their economies, where the ECB is expected to maintain its current monetary policy after it cut rates before, but the BoE may raise its asset purchase facility along with maintaining its low rates in order to support the fragile economy.
In general, crude will fluctuate heavily today amid high uncertainty caused by Greece and its conflict as the political parties did not reach the full agreement yet the finance minister is still heading with the general agreement to Brussels to secure a second bailout, where investors eye the final decision!