Since the 25th of June the crude oil price went in a rally of its own. It has now reversed that rally but with not clear support level it is possible that it would retreat to most common price of around $90.
Crude Oil is today loosing another 90 points to $94.95
Bank of Japan news that it will continue to provide monetary help to stimulate its economy has had little effect on the price of oil. Japan is the world’s third biggest oil consumer.
Oil producers will be particularly content with lower oil prices as they are currently increasing supply to bring prices down.
Today at 10.30 am USA time, investor will pay attention to the EIA Petroleum Status Report. The report provides information on petroleum inventories in the U.S.
What investor and trader like to know is that during periods of economic growth, demand for oil should increase. If inventories are low, oil prices could rise and vice versa, fully stock inventories will put pressure in oil prices.