WEDNESDAY: There has been a low ranking of oil cost as per expected that U.S crude stockpiles enhanced a week ago. This had further expanded a global surplus of crude.
Later on Tuesday, the reports made by American Petroleum Institute showed U.S crude inventories to have had risen approx. 1.6 million barrels a week ago. Whereas survey done by Wall Street Journal said that analysts were hoping inventories to be lowered by 300,000 barrels. Officially the information will be provided later today by U.S Energy Information Administration. Also, the latest estimate of US oil production is likely to be released.
According to Global Risk Management’s oil analyst Micheal Poulsen:
“The official EIA report this afternoon will be followed closely – should we see another build today, this could cause some volatility and weigh on oil prices.”
Over London’s ICE Future exchange, Brent Crude – the global oil benchmark, lowered at 1.1% at US$ 43.96/barrel. On the other hand, On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 1% at US$ 41.43 a barrel.
Apart from this, rising strength of dollar is constantly is trial to fluctuate the oil prices today. A rise of 0.2% was to be seen on The Wall Street Journal Dollar Index – a track down board for dollar against rest of the currencies. As oil is priced in dollars, it becomes more expensive for holders of other currencies as the greenback appreciates.
It hasn’t lower as such since April when the output had peaked at 9.6 million barrels a day. Since summer, the declines have constantly been lowering and the production has been falling by 20,000 barrels/day – From August to September at 9.3 million barrels/day.
After deep annual analysis, the global gut of crude depicts abating signs as major producers (internal to external of the Organization of the Petroleum Exporting Countries)
Moreover, both benchmarks are around 40% lower from same time in year 2014 and have stayed in the below range of US$ 50 for months.
Friday is a day for investors to look forward to what happens next in OPEC meeting to determine fate of crude oil.
Reformulated gasoline blendstock – the benchmark gasoline contract – fell 1.1% to US$1.35 a gallon. ICE gasoil changed hands at US$401 a metric ton, down at US$1.75 from the previous settlement.
