Commodity Daily News

US Crude Stocks Rise More than Expected

Spot crude oil prices were on the rise with renewed fighting in Libya. US crude oil inventories showed higher than expected levels but did not sink crude oil prices.

At the end of the trading day, spot crude oil prices were trading slightly higher at $104.80 after opening the day at $104.24. Price volatility was on the low side as recent trading has been volatile in the commodity after prices pushed to a new yearly high at $107 on Monday.

Continued attacks by forces of Col. Qaddafi in Libya have kept crude oil markets on edge with no end in sight for the violence. Rebel groups vow to continue the fighting despite attacks by the Libyan air force and heavy armor.

US crude oil supplies showed crude oil stocks were at higher than expected. The weekly US crude oil inventory report released numbers positing a 2.5M barrel rise in US stocks. Forecasts were for a rise of only 0.8M barrels.

Despite the higher than expected inventory levels, crude oil prices still managed to close with small gains. Further price increases in the commodity should be expected given the continued violence in the Libya and the threat of unrest spreading to additional oil producing nations. A short term target of $107 is currently being eyed by traders.