CNBCs Sharon Epperson: Traders gave a very large part of today trying to determine whether the inventory report released this morning was very bullish or bearish. The fact remains that it is very tragic. We started the morning with this price call from Goldman Sachs reiterate USD 149/bbl by the end of the year that is where the price of oil pipeline and then of course that we have the data from the energy department. The first thing you look at that big build in crude supplies of more than 9 million barrels, one would think oil prices are sure to end lower on the session after that but keep in mind gasoline supplies also dropped very significantly and therefore that was seen by some as a bullish indicator in such data.
Meanwhile, we also look at the fact that build in crude supplies was due to the fact that perhaps it was simply an anomaly in the storm activity around the Gulf. We saw a huge rise in imports, that is what affected that total crude build.
On storms, we continue to model what happened with tropical storm Fay and the fact that some models have the turning point in the Gulf of Mexico. The only thing most people look now that he is the Northwest and near Mobile Alabama, but there are still a number of forecasters out there who say that it could go back in the Gulf of Mexico and its influence on the oil and gas installations.
Meanwhile look at natural gas prices, which are also higher on the session. Tropical storm Fay a factor, higher prices of crude oil is a factor and the fact that this market is heavily oversold, there is another factor even though the expectations for a sharp increase in the storage of natural gas supply to that report comes out tomorrow.
CRUDE CONCERNS
- Goldman Sachs says crude rising to $ 149/bbl the end of the year
- Mer survey data mixed; up to 9.39 m barrels of crude, gasoline down 6.2 m barrels
- Acceleration of imports into the Gulf of Mexico region drives up supplies
- Some models predicting the weather tropical storm Fay could still return to the Gulf of Mexico, thereby affecting oil & gas installations
- Small increase expected in natural gas
Credit : news.moneycontrol.com Pic : images.moneyandmarkets.com
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