FXstreet.com (Barcelona) - European investors sped up the recovery phase in Crude Oil, which was first initiated in the US session on Wednesday, and then prolonged in Asia after a rebound from an 11-month low at $71.00 . Prior to that, the upside scope was blocked by terrifying US housing and durable goods data. Today, the price found its ceiling at $73.50, a 1.30% above yesterday's close.
Market players have been discounting a great deal of poor news out of the oil market, after the slump from a 2-month high above $83.00 in early August came as the US commenced to show progressive weakness in most of its key reports, including housing, manufacturing and jobs sector. This deterioration put doubts over the US recovery, creating rising fears of falling energy demand.
Despite growing US stockpiles, with the latest setback being a 4.1M rise in oil storage (Aug 16-20) announced yesterday by EIA, a softer US dollar contributed to make oil prices cheaper for foreign investors, and those taking long positions finally outbalanced the conglomerate of bears, giving a much-needed respite to oil quotes. Current price stays firm at $73.30 / bbl.
