Commodity Daily News

Crude Oil Momentum to Rise Further

Crude Oil rose above $70 a barrel after an industry report showed the biggest decline in crude inventories since September in the U.S., the world's largest user of the fuel. Also today, the Energy Information Administration (EIA) report will probably give a better direction to the market.

A U.S. Energy Department report today will likely show Crude Oil stockpiles declined 2 million barrels, according to economists' estimations. A fall in crude inventories may cause the commodities market to move higher, and will reinforce Crude to stay at or go above current levels.

Oil prices yesterday spiked above $73 a barrel, which stood as the June high for more than 2 weeks, as the Dollar declined and escalating militant attacks in Nigeria raised concern that supplies may be disrupted. Crude Oil is set to extend gains amid this week's volatility and may reach the $76 a barrel level.