Commodity Daily News

Oil Rebounds On Lower US Inventories.

Crude Oil prices rose significantly yesterday, as a barrel of oil was traded around $116.80, an increment of over $3 from the previous day.
The main data regarding oil yesterday were the U.S Crude Oil Inventories, which dropped by 0.4M barrels, 0.3M more than expected, supporting the rise in Crude Oil prices. It seems that yesterday's bullish behavior came also as a result of the sharp declines oil experienced during the previous days, and yesterday's bullishness had corrected some of this drop.

In the meantime, the war in Georgia continues to contribute to the oil price movement, as the pipeline from Azerbaijan through Georgia to the black sea that is responsible for transportation of 1 million barrels-a-day remained closed for the second straight day. As for now, the war between Georgia and Russia seems to ease down, and traders are well advised to follow developments from that region.
As gasoline demands are increasingly falling, it seems that Crude Oil may soon resume its bearish trend. However, as any global event appears to dramatically toy with oil prices, staying alert and following world news should remain investors' main strategy.