Analysis and Recommendations:
Crude Oil climbed today ahead of inventory data to trade at 103.30 after the API report last evening showed a drop in inventories. Brent Oil was up 50 cents while crude oil climbed 64 cents. Brent oil is trading at 109.32 with the spread narrowing to $6.00. The price of oil ticked as traders anticipated a decline in U.S. supplies of crude. The report due later Wednesday on U.S. supplies for the week ended May 30 is expected to show a decline of 2 million barrels in crude oil stocks and an increase of 2 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.
The official weekly US stockpiles report is expected to show crude inventories dipped 100,000 barrels, on average, in the week to May 30, according to a Wall Street Journal survey of 13 analysts. A decline in US inventories usually indicates healthy demand in the world’s biggest economy, which would in turn support global crude prices. US petroleum products were forecast to show gains, including a 300,000 barrel increase in gasoline inventories.
Investors are also monitoring the situation in Ukraine. Government forces and pro-Russian insurgents have been embroiled in skirmishes for weeks in eastern Ukraine, but the fighting has so far not expanded into a full-fledged civil war in the ex-Soviet state.
The West has accused Russia of fomenting unrest in its neighbor since the ousting of pro-Kremlin president Viktor Yanukovych in February. Moscow denies the allegation.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
