Crude oil prices steadied slightly as woes of insufficient supply are finally leaving the market. Consumers now are relieved that the EIA petroleum report came out showing an increase which kept prices for crude stable.
In addition to the EIA report, the greenback started to gain grounds against majors as the release of company earnings were good while crude prices took a minor slip. Yesterday, the contract gained $0.23 as it closed at $118.30 while recording a high of $118.69 per barrel and a low of $116.45 per barrel.
Today, crude oil prices fell slightly as investors are less worried about the lack of crude supply since the EIA report showed an unexpected rise of crude oil stockpiles while there is still falling gasoline supplies. Now investors are less attracted to the dollar backed commodities as the greenback continues to appreciate crude prices will continue to slip. Today the crude oil market opened at $117.93 while recording a high of $118.30 per barrel and a low of $117.75 per barrel.
The EIA report was released yesterday showing that the U.S. commercial crude oil inventories increased by 2.4 million barrels from the previous week. At 316.1 million barrels, U.S. crude oil inventories are in the lower half of the average range for this time of year. Total motor gasoline inventories decreased by 3.2 million barrels last week, and are at the upper limit of the average range. Both finished gasoline inventories and gasoline blending components inventories decreased last week. Distillate fuel inventories decreased by 1.4 million barrels, and are in the lower half of the average range for this time of year.
The EIA report that was released gave all kinds of mixed signals of what trend crude oil prices will take next. Despite the fall in gasoline stockpiles as summer season approaches, inventories are still higher than the levels they were at last year. Now controlling the crude oil market is supply and demand factors, while investors focus on this more than the slipping US dollar.