Oil prices surged to a new all time record yesterday, and seemingly the idea of the continuation break to high records set will remain the ongoing sentiment for a while now. All factors yesterday helped provide upside pressures on crude providing strong momentum as the contract for April settlement ended up 5 dollars setting both new records, one what the highest intraday of $104.95 and the second was the highest closing level at $104.52 per barrel.
The OPEC provided the first support as they left their output quota steady, as it was widely expected, ignoring by that calls from consumer nations to actually head to enhancing supply to dent current market prices; the cartel remained firm with their stance as the upside upheaval is based upon speculations and mismanagement of the US economy, which I totally support. Another factor noted was the strong build up in inventories in consumer nations, markedly the US which supports the notion f adequate supply in the market.
Nevertheless, at the time OPEC noted to stacked up inventories, the EIA's weekly inventory status report on US commercial crude inventories that was projected to reflect further build up to mark the eighth consecutive week, actually fell against all odds. Analyst projected a rise of 2.4 million barrels in crude stockpiles which came with a decline of 3.1 million barrel, while a large drop was seen in distillates recording a large fall of 4.8 million barrels as the cold weather in the Northeast ignited demand on heating oil. Meanwhile gasoline stocks are still well above the average ahead of the summer driving demand season as they are still at a 14-year high and above the five-year historical average, they rose 1.66 million barrels to 234.3 million barrels in the week ended Feb. 29.
Meanwhile geopolitical imputes also added to the tension regarding supply disruption; as yesterday the Colombian rebels bombing to the Transandino Pipeline, which carries oil fields in the country to an export f