Oil prices in the first half of the day on Wednesday have been rising fast. A barrel of North Sea Brent Crude now costs $64.91 (+1.3%). A barrel of WTI on the market is selling for $58.74 (+1.2%). Market participants have quickly turned around the fall in the price of oil and are now re-establishing their positions.
Yesterday everyone was selling oil. Those market participants on the American session decided that the renewed strengthening of the dollar would make oil cheaper. Furthermore, the market was worrying again about the excess in the supply of oil. As a result, last night the price of oil fell by over 3%. The quotes are now going back to where they were.
Tonight the EIA is publishing its updated release for last week’s US oil reserves. It’s thought that oil reserves have lessened by 1.029 million barrels. If the real numbers are anything like as forecasted, the market will receive its fourth confirmation of a real tendency for the reserves reducing. This will be a factor which will facilitate a further rise in oil prices.