Black gold prices yesterday fell as the U.S Energy Department and the International Energy Agency both lowered their forecast for oil consumption worldwide for this year due to the spiking of prices. But still the support right now the crude oil market is seeing is from China as there demand climbed 5.5% this year after the country is try to restore itself from the earthquake.
In addition to that the Organization for Economic Cooperation and Development, like Germany, Britain, Japan, and the U.S is predicted to slow down on consumption of crude by 240,000 barrels a day this year as it was also pointed out by the Energy Department. Yesterday the contract shed $3.04 as it closed at $131.31 while recording a high of $137.98 per barrel and a low of $130.80 per barrel.
Today oil prices gained on the back of the weakened U.S dollar as investors enter the crude markets as a hedge against inflation and the falling dollar. Foreign investors are attracted to the markets as they hold a stronger currency, so it becomes cheaper for them to invest. The markets opened at $131.79 while recording a high of $132.60 per barrel and a low of $131.35 per barrel.
The EIA report is scheduled to come out today showing that crude inventories is expected to fall by 1.4 million barrels, while gasoline stockpiles are projected to increase by 1.1 million barrels. Although there is still a slip in crude oil demand as a whole but the rise in gasoline stockpiles should ease prices as demand on gasoline is dampened due to the surge in prices witnessed lately.