Crude oil little changed above $69.00 a barrel ahead of the jobs report released in the U.S. later on today. Yesterday oil retreated after weak U.S. housing data and as gasoline stocks increased more than anticipated.

On Wednesday the downbeat data released from the U.S., the world's largest crude consumer, raised concerns economic recovery may be delayed; the thing that capped demand on oil. After the upbeat data released recently showing improvement in major economies, the decelerating figures started to arouse skeptics. However, the non-farm payroll released later in the day is perhaps more important as it will reflect the status of the labor market. Thus, oil may extend its fall or rebound after the release of the news.

Moreover, the EIA report was released on July 1 showing that U.S. commercial crude oil inventories decreased by 3.7 million barrels from the previous week. At 350.2 million barrels, U.S. crude oil inventories are above the upper boundary of the average range for this time of year. Total motor gasoline inventories increased by 2.3 million barrels last week, and are in the lower half of the average range. Both finished gasoline inventories and gasoline blending components increased last week. Distillate fuel inventories increased by 2.9 million barrels, and are above the upper boundary of the average range for this time of year.

The incline in gasoline stocks reflected the weak demand on oil despite the driving summer season in the U.S. where there is supposed to be more demand on gasoline. Notwithstanding the surge that happened in crude prices in the previous months, the overall global demand is still vulnerable as a result of the economic downturn. The previous day, oil contract shed $0.58 closing at $69.31 while recording a high of $71.85 per barrel and a low of $68.52 per barrel.

On the other hand, the U.S. dollar strengthened against majors after the Chinese foreign ministry official mentioned that till the moment there is no intended plan for China to increase its reserves from other currencies. The dollar rebounded today after yesterday's fall. The dollar index is now at 79.96 compared with 79.67 on Wednesday's closing. The dollar's incline is damping demand on commodities; thus, oil prices are expected to face downward pressures if the dollar extended its gains. Today oil prices opened at $69.22 while recording a high of $69.74 per barrel and a low of $68.97 per barrel.

Ecpulse

disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk