Crude Oil Trades Above $80

Published on Tuesday, 10 November 2009 11:04 Written by TradersHuddle Staff

New York, Nov 10 (TradersHuddle.com) – Crude oil traded above $80 a barrel as the Dollar reduced its earlier gains and is trading almost flat against a basket of major currencies.
The contract for December delivery rose 76 cents, or 1%, to $80.19 a barrel on the New York Mercantile Exchange. The gains are on top of the 2.6% increase on Monday as some oil companies in the Gulf Coast shut down their production with the approaching of late season tropical storm “Ida”.

Even though the storm has made landfall and has significantly weakened. Oil and gas production in the Gulf are still adversely affected by the storm, contributing to a greater speculation that a decline in the historic high inventories could support current oil pricing.

Clearly the trader’s focus is on the inventory numbers, and a series of reports will ignite excitement in the trading pits. Later today the American Petroleum Institute will release data on petroleum inventories. Tomorrow, The Organization of the Petroleum Exporting Countries will release its monthly report on the oil market and on Thursday, the Energy Information Administration's more closely watched U.S. inventory data will be release, the report comes a day later than usual because of the Veterans Day holiday.