Powered By

Breaking News

EIA report Helps Oil`s Tragedy

Publish Date28/11/2012 04:58:34 PM

Last Update28/11/2012 05:20:36 PM

EIA report Helps Oil`s Tragedy

Despite the oil`s obvious downside bias, the EIA gave the commodity some upside momentum in order to resist the downside pressure coming from Fiscal Cliff fears and the stronger dollar.

The U.S. economy is still not showing signs of recovery in the near future, the Democrats and the Republicans still didn’t reach an agreement over the budget, to avoid the fiscal cliff. If the fiscal cliff occurs, the U.S. economy might face crisis that will push the economy back into recession.

Surprisingly, the new home sales came worse than the previous month reading, despite the Federal Reserve efforts to stimulate the housing sector through its third round of quantitative easing.

Oil prices were going down amid fears of fiscal cliff, but today the Energy Information Administration (EIA) report inspired an increase in oil prices but the overall picture for the commodity remains negative so far.

The EIA report announced a drop by 0.3 million barrel in U.S. oil reserves, compared to the previous decline of 1.5 million barrel. However, U.S. oil reserves dropped last week worse than the expectations of an increase of 0.4 million barrel.

The report also showed that the U.S. oil reserves have reached 374.1 million barrel, which is higher than the average of this time of the year. Total motor gasoline inventories increased by 3.9 million barrels last week and are in the lower half of the average range. Distillate fuel inventories decreased by 0.8 million barrels last week.

At 11:14 am New York time, crude oil prices declined to currently trade at $86.31 per barrel, recording the lowest at $85.73 per barrel and the highest at 87.25, after today’s  opening price at $87.20 per barrel.

The dollar index, which tracks the dollar movements versus a basket of major currencies, rose to 80.46 after opening today`s trades at 80.38, it recorded its highest at 80.59 and its lowest at 80.33 and that was as we said one of the main reasons behind oil`s downside bias.


Member Account Required
You must be registered as a member of the forums and logged into your account to post messages. If you do not have a member account, please Sign In or Register.
United States
Asia Pacific
Economic Calendar
Holiday Calendar
ECB Calendar
Feds Calendar
BoE Calendar
Boj Calendar
Top News
FX Updates
Market News
Global Highlights
Political News
Around the World
At A Glance & Video Commentaries
Market Pulse
Press Releases
About Us
Contact Us
Privacy Policy
Terms of Services

Risk Disclaimer : All information on this page is subject to change. The use of this website constitutes acceptance of our Privacy Policy and Terms of Service. Please read our Privacy Policy, Risk Disclaimer, Terms of Services and all legal disclaimers. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone.

Opinions expressed at ICN.com are those of the individual authors and do not necessarily represent the opinion of ICN.com or its management, shareholders, affiliates and subsidiaries. ICN.com has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and ICN.com is not accountable for their input. Any opinions, news, research, analysis, prices or other information contained on this website, by ICN.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. ICN.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market prices, meaning prices are indicative and not appropriate for trading purposes. ICN.com does not bear any responsibility for any trading losses you might incur as a result of using this data.