| After rising for a fifth consecutive week last Wednesday, tomorrow's US Crude Oil Inventories report (15:30 GMT) is expected to show continued surpluses of supply in the world's largest energy consumer. Forecasts expect to see between 1.5M and 2.6M barrels of inventory growth.
Oil prices received a bump in Tuesday's European trading session as uncertainty about Egypt's political future, as well as the protests in Yemen and Iran, have driven many speculators to anticipate coming disruptions in supply.
Growth in American inventories appears to support this assessment as consumers stockpile oil in expectation of a coming reduction in output.
The price for a barrel of Light, Sweet Crude today jumped from $84.85 to as high as $85.94 before meeting resistance and pausing near $85.85 during early New York trading.
Traders may be able to deduce one important factor for trading Crude Oil on Wednesday. If US crude inventories decline, or grow far less than expected, we may see a jump in oil prices as supply appears to be descending and/or demand has increased.
However, should Wednesday's inventory report reveal the expected increases to US stockpiles, traders may anticipate stability to Crude Oil's recent bearishness.
We may continue to see some upward movement as speculators mull the recent turmoil in the Middle East, but the supply-demand equation appears to support the recent downturn. |
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