The bullish wave is continuing in the crude markets as the EIA report came out yesterday showing an unexpected fall in US inventories in which it is the biggest fall in four months. In addition to the EIA, a report by the International Energy Agency lowered supply forecasts up to year 2030 as they projected that companies may produce fewer amount of 100 million barrels per day from the prior forecast of 116 million barrels per day all gave a great support to the surging of crude prices as it adds to economies inflationary pressures. The contract gained a shocking $4.19 as it closed at $133.17 while recording a high of $134.15 per barrel and a low of $128.60 per barrel.

Today, another all time record high for crude prices at $135.04 per barrel as massive amount of investment inflows were introduced to the oil market. Investors are attracted to the crude markets now based on a weaker dollar as a result of Feds lowering their growth forecast for the US this year. They entered the market as they hedged against inflation and a falling dollar while foreign investors are welcomed since they hold a stronger currency so it becomes cheaper for them to invest. The market today opened at $133.89 while recording a low of $133.72 per barrel.

The EIA report was released yesterday showing that the U.S. commercial crude oil inventories decreased by 5.4 million barrels from the previous week. At 320.4 million barrels, U.S. crude oil inventories are in the middle of the average range for this time of year. Total motor gasoline inventories decreased by 0.8 million barrels last week, and are in the lower half of the average range. Finished gasoline inventories increased last week while gasoline blending components inventories decreased during this same time. Distillate fuel inventories increased by 0.7 million barrels, and are in the lower half of the average range for this time of year.

Investors are reluctant to leave crude oil markets as they believe that prices will continue to rally as there is increased demand of crude global wise with insufficient supply. Also with geopolitical concerns in countries like Nigeria which is Africa