Crude Oil Jumps after Inventories Fell, Support by Risk Appetite

12 January 2011 12 January 2011

BonTrade

Crude oil jumps after data showed inventories fell by -2.2m barrels during the week ending Jan 7, versus expectation of 0.4m barrels rise. Distillate inventories increased by 2.7m barrels versus consensus of 1m barrels rise. Gasoline inventories rose by 5.1m barrels. The -2.2m drop in oil inventories marked the sixth consecutive weekly decline and helped pushed WTI crude oil prices through 92 level. Technically, it looks as if 92.58 will be taken out soon to resume recent up trend through 95 psychological resistance.