Dow Jones Industrial Average may play dead on the background of oil prices growth

Dow Jones can not grow

In brief: Dow Jones Industrial Average continues negative motion. The level of general support for Dow Jones from the bulls is at the lower end.

Dow Jones Industrial Average falls in early trading on the U.S. stock market. The negative statistics from the Eurozone countries and the collapse in Asian stock markets provokes minus the U.S. market. Dow Jones Industrial increases by 0.39%, trading volume remains low. Everything depends on oil prices.

At the same time, oil futures Brent and Light Sweet before leaving the official U.S. Department of Energy data on stocks of petroleum and petroleum products in the country are traded in the positive zone and stay above the $ 72 per barrel. At the moment of time the price of oil futures transactions were: – Light, Sweet Crude Oil (July) – 72.88 (0.89) with a range of quotations 72,03-72,91; – IPE Brent Crude (July) – 72.77 (0.47) with a range of quotations 72,01-72,85. Positive changes in the prices of the deals with oil futures today due to expectations of more substantial than had been forecast before, the weekly decline in U.S. stockpiles of crude oil, as well as some of the weakened position of the U.S. dollar on world currency markets. So, last night industry experts predicted that as of June 4, commercial stocks of crude oil in the United States could decline for the week by 1,3-1,5 million barrels., Gasoline supplies could increase by 400-500 thousand barrels. And heavy distillates stocks could grow up to 500-600 thousand barrels. However, according to independent experts from the American Petroleum Institute (American Petroleum Institute, API), which was published today at 0:30, Moscow time, stocks of crude oil in the U.S. have fallen more significantly than predicted before, but stocks of petroleum products grew at the same time more than expected. According to API, stocks of crude oil in the U.S. on 4 June declined for the week by 4.54 million barrels. But gasoline inventories rose 1.5 million barrels. And heavy distillates stocks – by 3.0 million barrels. At FOREX dollar today is reduced relative to the euro and other currencies except the Japanese yen, which also contributes to purchases of oil futures, which rose on the eve of the price to a maximum of three trading sessions. Since the beginning of today’s oil prices have risen on average by 0,9%. This quotations Light Sweet today are growing increasingly quotations Brent. As a result, to date, established a natural negative difference in prices on current transactions between Brent and Light Sweet. It is possible that on the basis of the trading day price difference between Brent and Light Sweet will be negative. Recall that on April 12 Brent oil price established higher prices of oil WTI (Light Sweet). The reason, according to experts, were record-high oil terminal at Cushing in Oklahoma, designed to ensure that transactions in futures Light Sweet at the NYMEX, reached the end of May level of 37.9 million barrels.

Anrey Torbinski
2010-06-09 14:18, Economics.

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