FX.co ★ Oil review for 10/05/2010

Oil review for 10/05/2010
Сrude oil futures rose moderately on Monday after a sharp collapse during 4 straight sessions. The growth was prompted by the adopted plan of helping the Eurozone countries in the amount of about 1 trillion USD. By the end of the New York Stock Exchange the June futures for sweet oil spiked up by 1,69 dollars or by 2,3% to 76,80 dollars per barrel. Nevertheless, the oil managed to bring back only a few part of those 11 dollars per barrel lost last week having decreased almost by 13% amid the fears regarding the crisis in the Eurozone and rising oil reserves. On Friday, the oil futures fell to the lowest level from February 12. June futures for Brent oil gained 1,85 dollars or 2,4% to 80,12 dollars per barrel. On Friday, they dropped to the lowest rate from March 15.
The European Union and its governments were selling the futures with the earliest delivery date and were buying the futures with longer maturity date that has become a typical for this time of month. Together with the oil reserves uprise it helped to push the June futures down by 3,72 compared to the July contract. It is the largest discount from February 4. At the end of April the US oil reserves reached a record high and expected to go further. The market players suppose that these oil reserves data for the week May 1-7 will demonstrate a reserves’ advancement and distillation capacity lowering. In accordance with the analytical forecasts the crude oil reserves improved by 800 000 barrels, petrol reserves – by 700 000 barrel, distillatory reserves which include the diesel fuel and residual oil ticked up by 1 million barrels. As estimated, the distillation capacity use weakened by 0,3%. Last week the Energy Information Administration reported that the capacity use totaled to 89,6% by 0,6% higher the previous week rate and has come as the highest level from May 30, 2008.