Markets

Fundamental Oil Report (2010-11-03)

News The EIA Report
Previous 5.0 Million Barrels
Forecast 1.5 Million Barrels
Analysis Crude rose above $84 per barrel today as investors anxiously await details from the Feds regarding plans to boost the US economy, which could further weaken the dollar and boost demand on oil; while inventories dropped 1.1% last week according to yesterday's API report. Crude today hovers around $84 per barrel recording its highest around $84.47 and lowest around $84.07, while it currently is trading around $84.11 per barrel. The Federal Reserve is winding up its second day of the meeting, where they are expected to announce the second round of QE of purchasing $500 billion worth of government bonds to stimulate the economy. Consequent to this meeting crude has gained for the fourth consecutive day bolstering demand on oil and driven primarily by a weaker greenback. Crude yesterday traded around $84 per barrel recording its highest around $84.45 and lowest around $82.81 per barrel, closing around $84.42 per barrel. Oil rose as traders await for more news from the Fed regarding QE that are expected to be announced today which is pressuring the dollar lower, alongside a drop in inventories by 1.1%. On the other hand, the API yesterday showed that oil inventories have dropped by 1.1% recording 367.6 Million Barrels last week, while gasoline also followed and fell by 3.2 MB to record 219.7 MB; furthermore, distillates shed 4.7 MB to 161.4 MB last week. The EIA report is anticipated to be released later on today, where it is expected to show a rise in inventories by 1.5 MB recording 366.1 MB from 5.01 MB, alongside heating falling to its lowest level since July. As for NYMEX as of 04:46 EST; motor gasoline rose 0.26% recording $211.510 per gallon; heating is trading around $230.220 per gallon adding $0.37; whereas natural gasoline shed $0.18 to record $3.863. In London, Brent futures inclined $0.22 to record $85.600.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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