EIA Reports Surprise Decrease in Crude Oil Inventories
Energy Information Administration released its latest inventories data on Wednesday for the week ended November 4th, 2011. As per latest report of EIA, crude oil inventories fell 1.4 million barrels for the respective week while analysts expected crude oil stockpiles to increase by 1 million barrels.
Gasoline stockpiles declined 2.1 million barrels as compared to expected decline of 400,000 barrels for the week. Distillates which include heating oil and diesel fell 6 million barrels while analysts expected the distillates inventories to decrease by 2.5 million barrels.
Tahir Zahir from Tyche Capital Advisors commented, “The report was a surprise, while crude has seen an upswing in the past few sessions it has encountered resistance at the 200-day moving average above ($97 a barrel),â€
Crude oil futures contract for December delivery fell 1.1 percent or $1.10 to settle at $95.74 per barrel on the New York Mercantile Exchange.
Gasoline futures for the same month delivery fell 2.3 percent or $0.06 to $2.64 per gallon. Heating oil futures contract for December delivery slipped 0.6 percent or $0.02 to settle at $3.10 per gallon. Â Natural gas futures contract for December also dropped 2.4 percent or $0.09 to $3.65 per million British thermal units.
Stronger US dollar was the main reason behind the drop in crude oil futures and other commodities. Greenback is negatively correlated with commodities as it makes commodities cheaper for holders in foreign currencies.
The dollar index DXY which measures the US dollar’s performance against its major counterparts gained to 77.915 on Wednesday as compared to 76.620 on Tuesday’s North American trading session.
Twitter •
Most Popular Content
- Gold Flying and Making New All Time Highs
- Gold Prices Slip Ahead of Anticipated Economic Data
- Oil Prices Surge From Lows Amid Mixed Global Signals
- U.S. Stock Indices: A Dance Between Optimism and Fear
- Gold Prices Dance with CPI Data and the Fed
- Oil Prices Surge Amid Record Demand and Supply Tightening
- Gold Steady As US Dollar Index Tries to Make Gains
- Some Respite for Crude Oil within Bear Trend
Currency Articles - May 22, 2019 15:21 - 0 Comments
The Pound is in Freefall – When Will It Stop?
More In Currency Articles
- GBP Gets Ready for an Unpredictable Day with Meaningful Vote 2
- British Pound Stays Strong Whilst The Dollar Remains Weak
Gold and Oil News - Mar 30, 2024 10:37 - 0 Comments
Gold Flying and Making New All Time Highs
More In Gold and Oil News
- Gold Prices Slip Ahead of Anticipated Economic Data
- Oil Prices Surge From Lows Amid Mixed Global Signals