Crude Oil Stays above 91 on API Stock Build

12 January 2011 12 January 2011

BonTrade

WTI crude oil was taken higher by stocks overnight and manages to stay above 91 level on small API stock build. According to America Petroleum Institute, US crude stocks rose 57k barrels to 337.1m barrels in the week to January 7 versus expectation of 1.1m barrel drawdown Gasoline inventories was up 7.04m barrels to 229m barrels. API and DOE moved together in 75% of time over the past four year and the API data is supportive to market expectation of 0.4m barrels gain in the report from Energy Department to be released later today. Technically, yesterday's rebound suggests that crude oil's consolidation might have finished earlier this week and further strength is in favor to push crude oil through recent high of 92.58.