Commodity Daily News

Crude Oil Inventories Soar

The weekly crude oil inventories report from the US Energy Information Administration saw a sharp rise in the level of crude on hold. This did not stop crude oil prices from moving lower with US equities. Like most other commodities crude oil prices will likely be subject to events in Europe for its direction. Should Europe come to an agreement to shore up the fiscally strapped nations crude oil will likely move higher in-line with higher yielding assets such as equities and the AUD.

Looking at the charts the price of spot crude oil tested the rising trend line from the October and November lows which comes in today at $100. While the angle of the trend line is too sharp to maintain a dip to $95 would not jeopardize the bullish technical picture.