Oil prices soared yesterday as the EIA report came out showing a decrease in crude inventories despite the soaring of energy products, but that didn't seem to stop U.S consumers as there demand is still on the rise. Although investors were focused on Saudi's meeting on Sunday, but still demand and supply still was in there head as they feel that supply is insufficient worldwide especially after the decrease in inventories from the U.S.
Also in Nigeria at the Chevron Corp. there was a strike planned from workers which caused more fears that this will slow production in Nigeria also known as the biggest crude producer in Africa. The contract in regards to the fear of supply gained $2.67 as it closed at $136.68 while recording a high of $136.88 per barrel and a low of $131.82 per barrel.
Black gold prices today slipped as the strike that was planned in the Nigeria was no more as the workers agreed to talk to management and work things out. If this strike would have happened it would have cut production from Nigeria by 350,000 barrels a day.
Also in news Venezuela will not be attending the scheduled meeting on Sunday as Saudi Arabia will take measures of increasing output as they take in every consideration in order to lower prices that have been affecting many nations while Venezuela believes there is no need for more output. Today the markets opened at $136.09 while recording a high of $136.32 per barrel and a low of $135.80 per barrel.
The EIA report was released yesterday showing that the U.S. commercial crude oil inventories decreased by 1.2 million barrels from the previous week. At 301.0 million barrels, U.S. crude oil inventories are at the lower boundary of the average range for this time of year. Total motor gasoline inventories decreased by 1.2 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 th