As investor confidence has risen over the last few days, oil prices continue to go up. The price of crude has shot up some 265 pips over the last 24-hours, ahead of today's U.S. inventory report. The weekly report is forecasted to show that U.S. inventories have increased over the last week. Typically this means that demand is low and prices fall as a result.
That being said, oil has seen substantial gains due to the rise in stocks over the last several days. Should indices continue to move up today, traders can expect oil prices to rise as well. Attention should be given to both European and U.S. economic indicators to see where investor sentiment stands throughout the day. Positive data out of Europe will likely lead to higher oil prices. Oil Prices Shoot Up as Investor Confidence Rises