Crude oil markets have taken the high road as prices keep soaring on concerns of insufficient supply. Yesterday the May contract recorded an all time record high of $119.90. Since the summer driving season is soon coming to a start, demand starts increasing as consumers still do not keep in mind the rising gasoline prices.
The existing fear about the damaged pipeline in Nigeria which caused them to slow production by 169,000 per day is still floating the market while this is a major concern since they are a major supplier to the US. Yesterday the June contract gained $1.44 while closing at $118.07 as it records a high of $118.98 per barrel and a low of $115.94 per barrel.
Today, supply factors still control the crude oil market as OPEC are discouraging the fact of pumping more oil into the market. Oil now is getting more support than ever as prices continue to spike while attracting more and more investors to the market.
As the dollar continues to deteriorate while there are expectations of further interest rate cuts by the Feds as they try to revive the US economy, crude oil prices continue to incline as it is known as a hedge against inflation and the falling greenback. Today, the contract opened at $118.33 while recording a high of $118.33 per barrel and a low of $118.00 per barrel.
The EIA report is expected to come out today with expectations that crude oil stocks increased by 1.1 million barrels while stocks of distillate which include heating oil and diesel fuel are projected to have fallen by 300,000 barrels. As for the gasoline inventories they are predicted to show a decline of 2.1 million barrels.