Commodity Daily News

Crude Oil Rises Despite Negative Inventory Data

The price of spot crude oil rose today despite sluggish equity markets and rising crude oil inventories. Crude oil prices finished higher on the day at $72.75, from an opening day price of $71.88.

The US Energy Information Administration released its weekly crude oil inventory level report that showed crude oil inventories rose 4.1M barrels. Market expectations were for a rise of only 0.1M barrels.

The rise in the price of spot crude oil was the first significant gain the price has made in the last 17 trading days. This sudden appreciation caught the market off guard going against the downward trend. Also adding to the confusion was the large rise in inventories, another sign that demand has yet to pick up.

The next support and resistance levels for spot crude oil trading are $70.75 and $74.15.