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Oil Soars to Monthly High on Demand Expectations

April 8, 2014 at 17:12 by Andriy Moraru

The price for light sweet grade of oil rose to its March 10 levels today as the US stocks rebounded on growth expectations. Oil is also benefiting from the pessimistic forecast for tomorrow’s inventories report by the Energy Information Administration.

Traders wait for 2.4 million barrel weekly decline to be reported tomorrow. It would be 10th weekly drop in a row for crude oil inventories in the United States. At the same time, commodity markets are reacting to the rising equities, which promise growing economy and high demand for energy and raw materials.

Oil prices are currently trading in a recovery wave, which has started following March 17 local bottom. Technically speaking, the oil is still trading not far from the middle of the symmetrical triangle originating back in 2011. With no significant tensions around the main oil producing regions, there are no strong incentives for the commodity to rally in the near future.

As of 17:09 GMT, the spot rate for WTI traded at $101.99/barrel following a close at $100.90 yesterday. It has reached as high as $102.40 earlier today.

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