Inventory Data Pushes Crude Oil Prices Beyond $83
New data on the level of crude supplies was released by the Energy Information Administration today and helped oil prices cruise to their highest level of 2010, before a quick pullback later in the trading session.
The price of a barrel of crude for April delivery reached drugs without prescription as high as $83.03 early Wednesday morning as speculators applauded the new data that showed a 1.4 million barrel increase in crude last week for a 343 million barrel total inventory level.
The Platts survey of analysts found the expectation was for 2.1 million barrels. Being much lower than the projected level of inventory caused an upward spike in Oil prices as the lower than expected number was taken as a sign of higher demand.
Analysts were quick to point out that despite the smaller than expected inventory, crude levels are still very high for the current oil price point. Speculators seemingly agreed as after the run up to $82, oil prices reversed back in the later morning of the New York session to close Tuesday’s settle price of $81.50.
OPEC, a buying prescription drugs online n amalgamation of the world’s largest oil producing and exporting nations, says a stable global economy for the remainder of the year should see an increase in demand of over 900,000 barrels of crude oil per day.
OPEC would prefer it if oil prices held at current levels, or headed higher. Real data suggests continued low demand for oil-based products in the US. Businesses are still hesitant to begin traveling and transporting at pre-recession levels. Without significant gains in US oil demand, it is hard to see OPEC’s forecast holding true.
Several lanalysts are continuing to call the current oil price levels(which are 17 per cent greater over the last month) too high based on supply and demand. Inventory data continues to remain near historical highs and OPEC has decided not to intervene greatly by significantly cutting production to drive oil prices higher.
Still a major catalyst for the current firmness in oil prices appears to be its correlation with US stocks and the general sentiment of economic recovery in progress. Investors appear confident that at some point, the improved economy will shine through and generate more oil consumption by business and consumers.
To view live Oil prices, then visit LiveCharts.Co.Uk where you can find live prices for commodities including spot Gold price and more.