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Energy Market
www.investing.com/analysis/eur-usd---sem-crise-para-quem-ganha-em-d%C3%B3lar!-11646
Energy Market
By | Oct 16, 2008 08:00PM ET As a result of the global slowdown and crippled consumer demand on energy products caused the U.S. oil stockpiles to come in more than expected as the EIA reported when it was released yesterday. The U.S. is known as the world's biggest crude consumer and so as there are speculations in the market that the economy might fall into recession despite the bank bailout plan as the credit crisis continues to deepen while crude prices plunged due to this. The contract shed $4.69 closing at $69.85 while recording a high of $74.50 per barrel and a low of $68.57 per barrel.
Today prices in the crude markets reversed from a 13-month low as investors felt that demand being that crippled was over exaggerated as they started entering the markets once again supporting the rise in prices. Also a support to the rise of prices was that the stock markets surged which calmed slight fears in the markets as this usually measures the economic performance, so having them rise is showing that things for now are good prompting more investors to enter the crude markets. The markets opened today at $72.30 while recording a high of $73.02 per barrel and a low of $72.15 per barrel.
The EIA report was released yesterday showing that the U.S. commercial crude oil inventories increased by 5.6 million barrels from the previous week. At 308.2 million barrels, U.S. crude oil inventories are in the middle of the average range for this time of year. Total motor gasoline inventories increased by 7.0 million barrels last week, and are below the lower boundary of the average range. Both finished gasoline inventories and gasoline blending components inventories increased last week. Distillate fuel inventories fell by 0.5 million barrels, and are below the lower limit of the average range for this time of year.
Investors are still ignoring the fact that OPEC which is responsible for 40% of the world's oil supplies is going to have an emergency meeting on the 18th of November which expectations show that they might cut supplies as way to keep prices from falling too low. In my opinion I believe that today's price rise will not last since I believe that on the medium term prices will slip as a result of the weakening economic conditions we are currently noticing worldwide.
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