September crude oil traded higher during the overnight and early morning hours, supported by improved risk-taking attitudes and surprising inventory data. While yesterday's Merkel-Sarkozy summit failed to provide fresh solutions to the European debt crisis, the crude oil market appears to be looking at global equity market stability and weakness in the US Dollar as positives this morning. The crude oil market also appeared to be drafting off ideas of tighter North Sea supplies and firm demand. While private industry data late Tuesday showed a surprise build in crude oil inventories, the larger than expected decline in gasoline supplies helped lift the crude oil complex. Expectations for this morning's EIA report are for a draw of around 750,000 barrels.
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