EIA Reports Increase in Crude Oil Inventories

The Energy Information Administration reported a sudden increase in crude oil inventories on Wednesday which put the rallying oil prices under pressure at NYMEX. As per the latest report on the EIA, crude oil stockpiles increased by 3.9 million barrels for the week ended November 25th, 2011. Analysts expected the crude oil inventories to increase by 1.5 million barrels.

Gasoline inventories increased by 200,000 barrels as compared to analysts’ expected increase of 1.5 million barrels for the respective week. Distillates stockpiles which include heating oil and diesel gained 5.5 million barrels as compared to expected decline of 1.5 million barrels by the analysts.

Crude oil futures touched their intraday high of $101.75 per barrel but paired their gains after the EIA inventories data. Crude oil futures for January delivery gained 0.6 percent or $0.57 to settle at $100.36 per barrel on the New York Mercantile Exchange.

Investors were still optimistic despite the negative inventories data due to the improved liquidity in the international financial systems as central banks around globe have decided swap their credit lines. The weakening US dollar also helped commodities to sustain their gains.

The dollar index DXY which measure the greenback’s performance declined to 78.346 on Wednesday as compared to 78.990 on Tuesday’s North American trading session.

Among other commodities, gasoline futures for January delivery gained $0.03 to $2.57 per gallon. Gasoline has gained 2.9 percent in the month of November. Heating oil slightly gained to $3.02 per gallon and over the month the respective contract fell 0.7 percent. Natural gas futures contract for January delivery declined 2.3 percent or $0.08 to $3.55 per million British thermal units.


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