Yesterday was the day where an all time high for crude oil was recorded at $122.73 per barrel. Prices extended their rally as tensions in Nigeria continue causing them to slow production and reduce exports due to militants attacking a pump station. As crude prices continue to rise, this only adds to inflationary pressures in which many economies already suffer from. Another support to the spike of crude oil prices was the falling US dollar yesterday in which investors entered the crude oil market as a hedge against inflation and a weaker greenback. The contract gained $1.87 as it closed at $121.84 while recording a low of $119.33 per barrel.
Although crude prices continue to spike, this is not dampening global demand as there is high demand by Asia and other countries. Today oil prices remain steady as we wait later on this afternoon for the release of the EIA report. Traders are starting to fear the slowdown in the US, as it is the world's biggest economy and largest energy consumer. Today the market opened at $121.76 while recording a high of $121.94 per barrel and a low of $121.50 per barrel.
Today, the EIA is scheduled to come out with projections showing an increase of 1.6 million crude barrels. While an incline of 800,000 in distillates which include heating oil and diesel. As for gasoline stocks it will decrease by 100,000. As long as there are tensions in Iran and Nigeria happening this will continue to affect crude supply worldwide, as a result to that, crude oil prices will keep inclining.