Crude oil prices dropped last week even after more than expected inventory fall. On 3rd January crude oil inventory fell by 7 million barrels from earlier 2.3m. There was no buying side pressure even after this big fall. It was like market had considered this drop as normal one after four consecutive falls.
The commodity first came down on strengthening USD and expectation of stimulus cut in coming Fed meetings and now the increase in supply rose concern. Libya is expected to resume crude oil production that may keep oil prices low.
Today evening American Petroleum Institute is going to release crude oil inventory data and tomorrow we have Energy Information Administration inventory release. Expansion in US Manufacturing Index and Factory Orders for last month may support high draw of inventory for last week.
At low prices we may see demand side pressure from industrial buyers that may keep WTI prices above $93.At Euro market WTI is trading at $93.92 up by0.51% and British benchmark crude oil Brent is at $107.30 up by0.56%. In Other energy products Natural Gas is up by 0.027% at $4.333 and Gasoline is up by 0.88% at $266.81 at 12:01 GMT.