Tuesday, 15 Feb 2011

Crude Oil Plunges to $83.85 a Barrel as Supplies Looks To Rise

Crude oil saw another bearish session on Tuesday trading, and is currently trading near $84.30 a barrel. Crude began today's session near the $85.00 level, and by midday crude prices saw a sharp slide. A barrel of crude oil has reached as low as $83.85.

Crude prices declined today after analysts estimated that gasoline stockpiles rose by 1.85 million barrels last week from 2409.9 million, the highest level since 1990. Crude prices were also boosted by the disappointing U.S. Retail Sales report. Sales at U.S. retailers rose less than forecast in January, suggesting that consumers are spending less due to the high energy prices.

Looking ahead to tomorrow, the U.S. Crude Oil Inventories report is scheduled for 15:30 GMT. This report will reveal whether oil supplies in the U.S. have really reached their highest level since 1990. Traders are advised to follow the release as it's likely to have an imminent impact on crude prices.