Prices for spot crude oil booked another day in the red as traders expect rising crude oil inventories in the US may off-set the recent destabilization in the Middle East. Following an $8 rally at the beginning of the Egyptian protests, spot crude oil has given back those gains and then some.
At the end of the day, spot crude oil was trading lower at $84.30 after opening the day at $85.15.
Since peaking at $93, spot crude touched a two and a half month low earlier in the day. Driving prices lower is stabilization on the Egyptian front as well as limited tensions in large oil producing nations such as Saudi Arabia. Also easing the price pressures are traders' expectations for larger than expected US crude oil inventory numbers.
Today at 15:30, the US weekly crude oil inventory report will be released. Market expectations are for a 1.8M barrel increase. Last week the report showed a rise of 1.9M barrels.
Yesterday's low of $83.30 and $80.25 should serve as support levels with resistance found at $89.40 and $93.00.