Commodity Daily News

Oil Rebounds on Unexpected US Gasoline Stockpile

World oil prices steadied during the Asian trade on today after a rebound of more than 4$ driven by an unexpected decline in US petrol stockpiles. Oil futures rebounded as an unexpectedly large draw in petrol inventories underscored the resilience of US demand.

Oil prices surged as high as $127.39 a barrel, their highest intraday level in 6 days, as technical traders rushed to cover short positions. The charge was triggered when futures prices crossed a key technical level of $123.75. The turnaround was sparked by US crude oil inventories data. Traders saw the decline in petrol inventories as an indicator of resilience in US demand, suggesting crude demand would also firm.

Oil prices have doubled over the past 2 years but have fallen from record highs of $147 a barrel earlier this month. If the USD continues to strengthen and the geopolitical situation improves, then the long-term prices will probably reach $90.