Yesterday, crude oil prices spiked to record another all time record high to record $123.93 per barrel. As the non-farm productivity came out in the US showing an increase, investors looked past the increase of crude inventories in the EIA which should have lowered crude oil prices and focused on productivity as this means that there will be increased demand for crude in order to fulfill production needs. The contract gained $1.69 as it closed on $123.53 while recording a low of $120.54 per barrel.
In the crude market today there is still high volume trading as markets are centering on the bullish news coming out rather than on the sufficient supply currently existing in the markets which should have lowered the current prices. There are fears floating the market that the rally of oil prices could slow down US economic growth as it is already adding to inflationary pressures. Of course let us not forget the current tension in Nigeria in Iran which is still supporting the jump in crude oil prices. Today the markets opened at $123.81 while recording $123.87 per barrel and a low of $123.41 per barrel.
The EIA report was released yesterday showing that the U.S. commercial crude oil inventories increased by 5.7 million barrels from the previous week. At 325.6 million barrels, U.S. crude oil inventories are in the middle of the average range for this time of year. Total motor gasoline inventories increased by 0.8 million barrels last week, and are in the upper half of the average range. Finished gasoline inventories fell last week while gasoline blending components inventories increased during this same time. Distillate fuel inventories decreased by 0.1 million barrels, and are in the lower half of the average range for this time of year.
Crude oil prices are continuing their surge despite the gaining US dollar. As investors normally entered the crude oil market as a hedge against inflation and the falling dollar, this time they remain in the markets as th