October crude oil prices traded higher during the initial morning hours, climbing toward their August high of $98.29. A good portion of the early support seemed to come from a favorable macroeconomic tone, fueled in part by a German court ruling in favor of ESM bailout fund and weakness in the US dollar. Another source of support for the crude oil market came on reports from Libya's deputy Prime Minister that the US ambassador to Libya was killed during an attack. Some traders suggested that this could stoke the geopolitical risk premium in the crude oil market. It is also possible that reports from the IEA this morning forecasting sluggish global oil demand through 2013, along with ample supply levels, would tamp down the prospects for release from strategic Petroleum reserves. However, the IEA forecast differs from the EIA's Short-Term Energy Outlook that raised their 2012 and 2013 global oil demand forecasts. Expectations for this morning's crude oil inventory report are for a draw in the range of 3.0 million barrels last week.
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