Crude oil prices slipped as the dollar gained momentum against major currencies while investors believe that if there is an interest rate cut in today's FOMC meeting it will be the last of which it is expected to be 25 basis points. The deteriorating greenback in the past couple of days attracted many investors to the crude oil market as it was a hedge against inflation and the falling USD.
Investors are starting to figure that crude markets have reached its peak and will start dipping like we noticed, so they started locking in on profits. In addition to that, data is floating the market showing that demand is decreasing while supply is inclining in which it was shown in a monthly Energy Department report. Yesterday, the contract shed $3.12 as it closed at $115.63 while recording a high of $118.84 per barrel and a low of $114.95 per barrel.
Today, crude oil prices remain steady while investors wait around and see what trend the US dollar will take after the Feds decision of rate, because then they will decide if they want to stay in the crude market or start fleeing the falling market as the greenback keeps gaining. Supply concerns in some places are finally easing as prices continue to slip. The market today opened at $115.36 while recording a high of $115.78 per barrel and a low of $115.36 per barrel.
The EIA report is projected to come out today showing that crude oil inventories are expected to have risen 1.6 million barrels. Also the expectations are going to show a decline of 800,000 barrels in gasoline and rise of stocks of distillate which include heating oil and diesel by 150,000 barrels. The concern now is not on supply and demand factors like it has been in the last couple of weeks, but now there is more attention on the FOMC meeting in which Feds will decide if they will cut interest rates or keep them steady.