Commodity Daily News

Oil Prices Rising as Winter Approaches Northern Hemisphere

After dropping to a 3-week low price of $80.63 a barrel, Crude Oil has seen a mild rebound since Wednesday. The bounce back in the EUR/USD seen yesterday brought about a shift in trading for the black gold these past two days, with a current trading price just under $83 a barrel.

Wednesday's surprise plunge in US oil inventories also helped support oil prices. Traders are pricing in the expected increase in fuel consumption among the northern hemisphere countries approaching winter. The drop in supplies confirms the notion that usage has been increasing. If the USD continues to weaken, and inventories continue to decline, the price of Crude Oil may very well continue to climb upwards of $87-88 a barrel in the weeks ahead.