NewsCrude inches higher Thursday
AnalysisCrude contracts for February traded slightly higher amid low volume, while settling near 26-month high ahead of a U.S. Energy Department report that is forecast to show a drop in stockpiles over last week as demand increased.

Bad weather in the U.S. increased demand for energy where the north-eastern parts and the whole east coast of the U.S. have been struck with a blizzard, crippling travel over the past period.  

Oil continues to trade above $91.0 a barrel for the fifth day, on estimates that show crude inventories might have dropped last week by 2.85 million barrel, after dropping by 5.3 million barrel in the week before.

Crude contracts closed lower yesterday after API report showed that supplies rose 3.06 million barrels or 0.9 percent last week.

Low volume continue to narrow the gains in trading, where crude for February delivery rose to trade at $91.06 a barrel, compared with the opening levels of $90.95 a barrel. The contracts managed to set the highest at $91.37 and the lowest at $91.07.

Dollar unchanged

The dollar held its grounds against majors, trading near the opening levels as indicated on the U.S. dollar index, which tracks the performance of the currency against six majors currencies including the Euro, pound and Yen.

The U.S. dollar index opened at 79.67, while currently trading at 79.61. The index reached the highest at 79.77 and set a low of 79.61.

The S&P GSCI Energy index current value is at 302.400, where the index dropped 0.040 percent on the daily basis.