Commodity Daily News

Crude Oil Prices Rise despite US Inventories Report

An increase in US crude oil inventories did not stop prices from increasing dramatically yesterday. Typically speaking, larger inventories mean that there is decreased demand in the US which causes prices to drop. This was not the case yesterday, as the weakened dollar helped boost commodity prices, including oil. Crude prices jumped over $2, and currently stand at $73.82 a barrel.

Today, crude oil prices will largely be based on whether risk taking persists in the marketplace. Should positive news from the euro zone and US be released, the greenback is likely to remain low against its main currency rivals. In this case, international demand for oil will increase, driving up prices. At the same time, should risk aversion return to the marketplace, crude oil may drop in afternoon trading.