Last Thursday crude futures declined in value on higher US oil inventories (+1.3M barrels) even though most analysts had been anticipating a 200.000b decline.
It should be reminded that the eurozone crisis helped oil prices decline down to $ 75,67/b. Positive news form the US together with hints at progressive changes in Europe provided temporary support for oil prices.
Moreover, China has reduced its import of crude oil, which aggravates the situation. In September the Chinese import of crude oil declined by 12.2% as compared with Sep 2010.
According to the Department of Commodity Trading, , the eurozone problems haven’t been resolved so far. Further escalation of the crisis may cause another decline in the market of crude oil.
It is very likely that Light Sweet Crude Oil Futures will fail to consolidate above $ 85,00/b and will decline down to $80,00/b.
