Despite a rise in inventories and sagging equities, Crude Oil futures rallied 5.8% Wednesday to above $70 a barrel. November crude futures rose $3.90 to $70.61 a barrel on the New York Mercantile Exchange, ending above the $70 level for the first time since Sept. 22.
Oil gained yesterday after the US Energy Department report showed an unexpected decline in supplies of gasoline. However, Crude imports also fell, down 2.7% to 9.5 million barrels a day which may suggest that the drop in gasoline supplies doesn't necessarily comes from increase in U.S demand.
While some improvement in demand is evident, in light of the poor economic data from the U.S and the continuous increase in Oil stockpiles there is no room for another strong rally as the U.S economic recovery proves to be sluggish. With a busy news day from the U.S., Oil levels are expected to experience quite a volatile trading day today; worse than expected results might erase Oil's gains from yesterday, however.