Commodity Daily News

Oil Price Rebounds from Technical Shift

Crude Oil prices found support near $96 a barrel Wednesday as sentiment appeared to favor a mild growth in global industry alongside a potential uptick in demand for the black gold. Data releases out of the US and China yesterday were driving many investors back into riskier assets as most reports suggested a surprise flattening out in growth among global industrial output and consumer spending.

As investors sought higher yields, the value of crude oil, which has been seen swinging widely all week, in fact rose to a weekly high of $96.15 a barrel. A sudden slump in dollar values due to yesterday's statement by Fed Chairman Ben Bernanke sparked an environment that was more conducive to risk-taking and growth. The value of oil, therefore, found modest support and began to make strides. If this sentiment can persist, the value of Light, sweet crude may continue to gain through the rest of the week, targeting $98 a barrel.