Crude below $82 per barrel due to higher US inventories

Crude oil throughout the Asian session on the back of a rising dollar, after the EIA report has showed persistent weakness in demand levels on oil in the U.S.

Crude contracts yesterday dropped due to low refinery capacity for the first time in five weeks to 80.7%; while oil consumption last week rose by 0.2% at 19.2 million barrels per day, but still remains sluggish at 20.2 million barrels per day, according to what the EIA stated.

The report yesterday showed a rise in crude inventories by 1.4 million barrels, compared to the previous week’s rise of 4.1 million barrels and lower than expectations for 1.9, where oil inventories reached 343.0 million barrels; inventories remain above the average range for this time of the year. Meanwhile, motor gasoline declined by 2.9 mb last week, and distillate fuel that includes heating dropped by 2.2 million barrels while both also remain above the medium term average.

The dollar appreciated in the U.S session last night; therefore reducing demand on commodities which also include crude to record low levels of $80.80 per barrel, after recording its highest in eight weeks at $83.00 per barrel.

The S&P GSCI index closed at 527.66, recording gains of 2.50; whereas the RJ/CRB commodity index declined by 0.17 to close at 274.62.

In NYMEX as of 03:30 EST; heating oil futures declined to record $210.580 per gallon down $1.040; motor gasoline is trading around $227.430 per gallon after ascending by $1.080; whereas natural gasoline fell back by $0.024 to record $4.535 per 1000 cubic feet. In London, Brent dropped by $0.46 to record $80.02.

Crude opened today at $81.90 per barrel and managed to ascend to record its highest at $81.95 and lowest at $81.45 per barrel, while currently trading around $81.90 per barrel.

Ecpulse

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