FXEmpire | March 21 2013 2:50 EDT
This morning crude oil is trading at 93.28 giving back 23 cents. WTI Crude oil traded directionless in the midst of countervailing forces. Looming financial meltdown in Cyprus enacted as a headwind, however US Federal Reserve policy statement provided some support to the prices.
Crude prices were supported by Feds decision for continued monetary easing which would improve the demand for crude from US. Lower than expected inventories and a weaker dollar internationally also supported crude prices. Traders can expect that crude oil prices can move higher as lesser inventories yesterday and Fed bond buying can support the prices.
Crude-oil futures prices trimmed earlier gains yesterday, after U.S. weekly data showed implied oil demand fell last week to its lowest level since Jan. 4. NYMEX oil futures gained also because of bargain buying after declining in the previous session due to Eurozone economic concerns and anticipation of rise in the US crude oil stock in the week ended Friday.
Crude oil recovered a bit from previous days loss to close higher, fueled by higher refinery processing rates and despite concerns over signs of weak gasoline demand ahead of the peak driving season.
Crude oil stocks fell by 1.3mn barrels, gasoline stocks fell 1.476mn barrels and distillate stocks (heating oil/diesel) fell 672,000 barrels, as per yesterdays weekly EIA inventory report. Stocks at Cushing, Okla., the delivery point for the NYMEX crude oil contract, dropped by 286,000 barrels in the week to their lowest level in three months.
The volume of Japan’s customs-cleared crude oil imports fell 2.7 percent in February from the same month a year earlier, the Ministry of Finance released this morning, but the probable increase in stimulus under the new leadership of the Bank of Japan, is helping to support crude oil demand and prices.
U.S. oil production is set to surpass the amount of crude the country imports for the first time since 1995 later this year, the U.S. Energy Information Administration said on Wednesday. This change in production is changing the balance of power in the energy markets, as the US now will be self-sufficient and more important to global production than the OPEC countries.
The US dollar traded fairly flat, as the FOMC decision and Mr. Bernankes press conference were pretty much in line with expectations. The US dollar traded close to the 82.88.
Natural gas inventories are expected to decline by 72-75bn cubic feet, actual data will be released by EIA later in the day. Natural gas is trading at $3.945 completely flat this morning. Natural gas fell on Wednesday on expectations of higher inventories today and profit booking. US Natural gas looks lower as weather shift has reduced the demand and overall inventories are touching its all-time high which can pressurize Natural Gas prices. Colder than predicted temperatures across the US is helping to support prices.
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Originally posted here