According to last week’s EIA report, oil inventories increased by 8,534 million barrels (+2,4%) up to 367,626 million barrels. Analysts had expected a modest increase by 1 million barrels.
The OPEC’s report published September 11th 2012, the global demand for oil stays unchanged around 0,9 billion barrels a day. The demand for oil is expected to increase by 0,8 billion barrels a day in 2013.
In terms of geopolitical risks, there is high probability of an armed conflict between Iran and Israel.
The recent decline in oil prices is mainly connected with the API’s reports on oil inventories (+2.4 million barrels per week).
According to the Commodity Trading Department of , oil price may well reverse the mid-trend and start moving within a bearish sloping channel in the near future.
