Yesterday morning we looked at oil prices, and noted that they were getting pretty close to breaking through the psychological $100 barrier. We also noted that prices could get a big lift if we got a bullish inventory report from the US Energy Department yesterday.
Well, we did indeed get a bullish report, which showed that inventories fell by a little over 1 million barrels (analysts had been expecting to see a 800,000 barrel increase), but prices have not been able to move higher even with the bullish oil report.
Immediately after the report came out prices were able to move a bit higher, but have not been able to maintain that momentum and today they are trading down to $97.29, down $0.74 on the day.
One of the big reasons why prices could be a bit softer than we would have expected is the lack of trading interest by traders ahead of the Thanksgiving holiday. I would not be at all surprised to see another flattish day tomorrow on light trading, and then to see prices resume their uphill charge at the start of next week.
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