The price of oil on Wednesday is rising. Brent on July contracts is trading at $49.27 per barrel and WTI with July delivery is going for around $49.25 per barrel. The spread between the two benchmarks has reduced, signalling the start of a new shift. The quotes have made it almost to $50 per barrel and the bulls are likely to break this level if positive stats come out.
On Tuesday the amount of commercial oil reserves for the US from the American Institute of oil was published. According to the data, last week saw a 5.13 million barrel fall in the reserves. The stats were much better than expected, thereby causing a growth in oil prices. The same stats are out today from the US Energy Information Agency. We expect that they will confirm the fall in reserves.
Only the USD is able to hinder the bulls plans. The dollar has been strengthening recently, thereby provoking a downward correction on commodity markets and limiting price growth. If the quotes manage to make it over $50 per barrel, the next level where the speculators will be stopped will be around $53 per barrel.