As better than expected US Manufacturing data pushed American markets higher, crude oil has gained impetus from the equity and forex markets to rise above $72 that it has reached in yesterday’s trade. When it is combined with the continually weak dollar, the Crude Oil price was floating, shrugging off mixed inventory data from the US Energy Department.
Fall in headline crude inventories
There has been a fall in headline crude inventories, however there is a continuous increase in gasoline and distillate stockpiles. Right now American distillate stockpiles are the highest they have been since 1983. The oil market is having increased focus on the supply side fundamentals, despite of all the facts, it is still believed by some analysts that there is potential for more upside in oil should the equity markets continue to extend the summers gains.
