Fundamental Oil

Fundamental Oil

Crude prices rose today as on one hand the dollar dropped, having the dollar index, which tracks the strength of the Federal currency in front of a basket of currencies, plummeting on the daily, one-hour and four-hour charts to trade at 75.00 recording a high of 75.35 and a low of 74.89, knowing that this plunge of the dollar boosted the appeal of the black gold as an alternative investment and since oil is a dollar-priced commodity that will presently seem cheaper to international traders.

On the other hand, today's EIA report showed that the U.S. commercial crude oil inventories decreased by 0.9 million barrels from the previous week from a prior incline of the inventories by 1.8 million of barrels, whereas an incline of 0.8 million of barrels was expected to climb by 0.8 million of barrels, indicating that the demand on energy is recovering gradually within the top oil consumer country.

In fact, The EIA report showed that the U.S. commercial crude oil inventories decreased by 0.9 million barrels from the previous week. At 336.8 million barrels, U.S. crude oil inventories are slightly above the upper limit of the average range for this time of year. Total motor gasoline inventories decreased by 1.7 million barrels last week, and are above the upper limit of the average range.

Whereas, the finished gasoline inventories increased while blending components decreased last week. Distillate fuel inventories decreased by 0.3 million barrels, and are above the upper boundary of the average range for this time of year, having crude prices accordingly opening at $79.38 a barrel recording a high of $80.26 per barrel and a low of $79.25 per barrel.