Crude prices deeply fell yesterday as we witnessed more weak data released and stocks falling in the U.S, not forgetting that the US economic health is crucial for the black gold market as it is the biggest oil consumer. This shows of course that the ongoing economic woes are still affecting heavily on major economies slowing down their growth and as a result their production levels are crippling eroding endlessly the demand on energy. The January contract opened yesterday as the December contract expired closing at $49.62 per barrel. Crude prices closed at $49.42 recording a high of $53.80 per barrel and a low of $48.52 per barrel as the oil contract considerably shed $4.68.

Today, crude prices are rising from its lowest level, below $49 a barrel, which was reached three years ago, as Asian stocks gained today on beliefs that major economies will combat more efficiently the global credit crisis knowing that China is highly expected to cut its interest rates later on today and the European Commission will have a new financial plan declared next week , having in mind that an increase in stocks suggests a higher level of production in the future and therefore a stronger demand on energy. So far, crude prices opened at $48.57 recording a high of $50.36 per barrel and a low of $48.25 per barrel.

The EIA report released Wednesday showed that the U.S. commercial crude oil inventories increased 1.6 million barrels from the previous week. At 313.5 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year. Total motor gasoline inventories increased by 0.5 million barrels last week, and are near the lower boundary of the average range. Finished gasoline inventories fell last week while gasoline blending components inventories increased during this same time. Distillate fuel inventories declined by 1.5 million barrels, and are in the lower half of the average range for this time of year.

Now, crude prices remain slipping to the downside despite the slight rise caused by the increase in Asian stocks as weak economic data released in the U.S and in other major economies predict a worsened worldwide economic performance that will erode the appeal of the black gold continuously.