|Previous||0.3 million barrels|
|Forecast||1.5 million barrels|
|Analysis||Crude oil continued its upside journey which begun two days ago amid hopes in Europe and fears over global oil supplies, as many positive factors are keeping crude on high levels despite the slow motion of EU leaders’ actions to give Greece the second bailout.|
Crude oil opened today’s session at $10096 and recorded a high of $101.80 and a low of $100.60, where it is currently trading around $101.55 a barrel.
European finance ministers have canceled a meeting today and will hold a teleconference instead in order to urge Greece to take more effective measures to cut its costs and reduce the budget deficits, which would secure an aid package worth 130 billion Euros.
We can say that this delay of the bailout decision has discouraged investors which been waiting for it many days especially after Greeks reached an agreement on those measures, but now, ministers are demanding more measures to give the country the bailout.
However, amid these negative factors that hit the optimism in financial markets, we can sneak to positive ones such as the effect from China which pledged to help in resolving Europe in its debt crisis have eased concerns that economic growth will slow and curb oil demand, as it will invest in Europe’s bailout funds.
And we can see how crude rose yesterday despite the American Petroleum Institute said that crude oil inventories rose by 2.9 million barrels last week where distillate fuel inventories fell 2.16 million barrels.
Today, the EIA may report will be released which is expected to show a rising US oil inventories last week by 1.5 million barrels compared to previous reading which reported a rise by 0.3 million barrels.
In general, fears over global oil supplies are high and increasing as tension between Iran and the west is increasing and fears are surrounding south Sudan and Sudan which are rejecting each other, as tensions between both have been increased since the south stopped pumping oil to the north in a dispute about pricing. Both sides have warned that a return to violence is possible.
Among our talk about oil supplies, we can look at the Iran-West situation which is getting worse every single day, as the United States and Europe are considering an unprecedented sanctions against Iran that could immediately cripple the country, but these sanctions would negatively affect the world financial system indeed.
Today is a crucial day for financial markets especially European markets, as the financial agenda is having a plenty of major fundamentals that would affect the market significantly, as Euro zone will release its GDP figures for the fourth quarter with expectations of a contracting economy, and we will see the inflation report from UK as well.