Traders Await Crude Oil Inventory Report
Posted on 04. Mar, 2009 by admin in Crude Oil
The Price of Crude Oil saw heavy price volatility yesterday, which declined in the European trading session but later jumped 5% during the New York trading session. The rise in price was due to increasing expectations that OPEC will make further supply cuts during its next meeting. Crude Oil closed the day up at $41.45 from yesterday’s price of $39.59.
A number of conflicting forces are influencing the price of Crude Oil. Declining equities throughout the world’s markets combined with weakening demand in the face of the recession are exerting pressure on the price. In contrast, future OPEC supply cuts mixed with a decline in last week’s Crude Oil Inventory Report have helped to increase the price.
Today, Crude Oil traders await this week’s Crude Oil Inventory Report from the Energy Information Agency (EIA). The report is forecasted to show a rise in Crude stocks by 300,000. A reading higher than the expected value could put further pressure on the price of Crude Oil with a target price of $40.
