Commodity Trading: Crude Oil Drops from a 17 months high

Falling from a 17 months high crude oil has dropped after a government report showed higher than forecasted increase in U.S. inventories and an unexpected rise in gasoline stocks. Oil fell for the first time in four days after exposure to the U.S. Energy Department showed that crude stocks rose 2.93 million barrels last week. This was the ninth consecutive increase, the highest since May. Analysts predicted that crude would rise by 2.5 million barrels. Crude oil for May delivery fell to 47 cents, or 0.6%, reaching 83.29 dollars a barrel in electronic trading on the Commodity Exchange in New York (Nymex). At 9:31 am Singapore time crude traded at 83.36 dollars a barrel.

Yesterday, the contract rose 1.39 dollars, up 1.7%, reaching 83.76 dollars per barrel, the highest close since October 9, 2008, after the fall of the dollar against the euro for the third time in four days. The U.S. currency fell to 1.3550 per euro at 9:38 a.m. in Tokyo from 1.3510 yesterday, was in New York. The weak dollar boosts the attractiveness of commodities as an alternative investment.
Inventories of gasoline rose 313,000 barrels to reach 224.9 million last week, as announced by the U.S. Department of Energy. Brent crude oil for May delivery fell 40 cents, or 0.5%, reaching 82.30 dollars a barrel on the ICE Futures Europe in London and at 9:35 am Singapore traded at 82.33 dollars a barrel. Yesterday, the Brent crude oil futures rose 1.42 dollars, up 1.8%, closing at 82.70 dollars a barrel.