Oil Rebounds After EIA Stock Data Lower than Expected

October 21, 2009 Share Print 0

The lower than expected number does not explain by itself why oil is appreciating, given the health of the energy levels in the US. Some weather concerns and expected rise in heating oil demand support this move.

Oil jumped to $80.05 a barrel on Wednesday, matching its one-year high hit the previous day, after a U.S. government report showed a smaller than expected rise in crude stocks in the world’s top consumer.

Crude oil stocks rose 1.3 million barrels in the latest week, the Energy Information Administration said in its report released at 1430 GMT. That was less than the 1.8 million barrel rise expected.

Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.