Commodity Daily News

Oil Prices Climbing Towards $91 a Barrel

A decline in US oil stockpiles by 5.3M barrels led to a steady rise in Crude Oil prices yesterday. As of this morning, the price for a barrel of crude was trading at $90.65. Analysts have forecast a rising price of oil ahead of the holiday season, but recent statements from OPEC seem to make it clear that the oil cartel will do what it can to keep prices below $100 throughout 2011.

The cold winter months in Europe and the United States, coupled with the long flight delays and cancellations due to bad weather, have caused a run-up in heating oil costs and gasoline demand. With a heavy news day expected from the US, traders could see a large amount of USD volatility today affecting oil prices in an unpredictable manner. It's possible that a resurgent USD could push oil prices back towards $89 a barrel in the short run.