By Russell Glaser – The price of spot crude oil continued to rise yesterday after the release of the weekly crude oil inventories report. A lower dollar and colder weather across the globe helped to support the rising price.
Yesterday, the Energy Information Agency released data showing U.S. crude oil inventories climbed over the previous week with a rise in imports. Inventories increased by 1.3M barrels last week versus a 1.6M barrel expectations from market analysts. One note that may have sparked the buying after the news release was the drop in refinery production. Refineries cut their production to 79.9% from last week’s numbers of 80.3%.
Spot crude oil prices are now trading higher at $82.70 after an opening price yesterday of $81.73. Prices reached a 15-month high at $83.47 after the data was released.
Supporting the rising crude oil price were a weakening dollar and harsh winter weather across the globe. The dollar traded lower against the euro and the pound after poor U.S. unemployment numbers and negative comments from the Federal Reserve.
It appears crude oil prices are not showing any signs of a weakening trend. Crude prices are climbing despite negative economic news. Perhaps we are seeing a rise in commodity prices before the global economy has actually put the economic recession behind them?
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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