Crude ends almost near unchanged mark

Market forecasts increase of 1.5 million barrels for crude stockpiles for last week Crude oil prices ended little lower on Tuesday, 08 January 2013 at Nymex. Prices ended almost unchanged as traders weighed expectations for a sizable increase in weekly supplies against support from the anticipated completion of a key U.S. pipeline expansion. On Tuesday, light and sweet crude oil futures for light sweet crude for February delivery closed lower by $0.04 (0.04%) at $93.15/barrel. For 2012, oil futures fell 7.1%, their first yearly decline since 2008, when markets were rocked by the global financial crisis. The U.S. Energy Information Administration on last Friday reported that crude supplies for the week ended 28 December 2012 fell by a much higher-than-expected 11 million barrels. For this week, market forecasts increases of 1.5 million barrels each for crude and distillate inventories for the week ended 4 January 2013. They also expect a 2.6 million-barrel increase in gasoline supplies. In overnight news there was a mixed bag of economic data released by the European Union Tuesday. Most of it was downbeat, highlighted by the Euro zone seeing record high unemployment in November, at 11.8%. Traders are awaiting Thursday's monthly European Central Bank meeting. Asian traders are awaiting a fresh batch of Chinese economic data due out later this week and during the upcoming weekend. U.S. economic released Tuesday moved the precious metals markets very little. Latest assessment showed that China's annual economic growth may have quickened to 7.8% in the fourth quarter snapping seven straight quarters of weaker expansion, but the recovery is likely to be tepid and the economy may need continued policy support. China's export growth probably rebounded from three-month lows in December, although the recovery is likely to remain shallow due to weak demand in the United States and Europe, the country's two biggest customers. The data is due on Thursday. In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.7% on Tuesday. The index last Friday hit a four-week high, in the wake of the greenback-bullish FOMC minutes issued last week. The shine of last week's temporary U.S. fiscal cliff agreement by U.S. lawmakers has quickly faded. The market place is now looking forward with trepidation to the upcoming negotiations between the U.S. Congress and the Obama administration on budget and spending matters. Such is likely to limit trader and investor participation in many markets in the coming weeks. In the latest report, Goldman Sachs cut its 2013 Nymex natural-gas price forecast to $3.75 from $4.25, but it also maintained its bullish outlook relative to the current market price.