Markets

Fundamental Oil Report (2010-11-10)

News The EIA Report
Previous 2.0 Million Barrels
Forecast 0.8 Million Barrels
Analysis Crude traded below $87 per barrel today after consolidating gains after hitting a two-year high as China recorded an 18-month drop in imports, while inventories remain high. Crude today hovers around $87 per barrel recording its highest around $87.02 and lowest around $86.18, while it currently is trading around $86.83 per barrel. The drop witnessed in oil today was due to Chinese data revealing a drop in domestic consumption to its lowest in 18-months, where imports recorded 16.1 million metric tons last month compared to the previous 22.9 million metric tons. Crude yesterday traded around $87 per barrel recording its highest around $87.60 and lowest around $85.46 per barrel, closing around $86.36 per barrel. Oil fell yesterday as the dollar gained grounds curbing the appeal of commodities and pushing investors towards purchasing low-risk assets after renewed fears in markets regarding the European sovereign debt crisis, after the rise in cost of borrowing to historical levels. Meanwhile, the Spanish government is preparing to sell 1.25 billion euros worth of governmental bonds amidst ongoing debates with Ireland to avoid receiving any aid plans like its Greek counterpart. The API yesterday showed that gasoline inventories probably shed one million barrels, while distillates including heating also fell by 2 MB. Investors' anxiously await the EIA report today that is expected to be released later on today. On our economic agenda today, we await for UK's quarterly inflation report that is expected to outline growth and inflation levels in the region for the previous quarter. In addition, the anticipated EIA is expected to be released today with expectations of an ongoing gain in inventories, due to the drop in demand on crude. As for NYMEX as of 04:84 EST; motor gasoline rose 0.36% recording $219.290 per gallon; heating is trading around $241.860 per gallon adding $0.49; whereas natural gasoline gained $0.05 to record $4.212. In London, Brent futures inclined $0.16 to record $88.470.

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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