FXEmpire | January 23 2013 1:59 EST
Crude oil prices have once again breached the physiological level of US$96/bbl. WTI oil prices are well poised to test further high of $98 as there seems to be a strong buying support around the current levels. Crude oil prices were supported by Bank of Japan plans for asset buying and strong investor confidence data from Germany that boosted the outlook for fuel demand. ECBs positive outlook for the euro zone also raised hopes of global recovery in 2013 and pushed prices higher. The US dollar has strengthened in overnight trading, which is weighing on prices. Traders have also been booking profits ahead of inventory releases.
Traders can expect crude oil prices to go up as US vote on raising the debt ceiling can further improve the outlook for global crude demand.
In fundamental data yesterday showed that Iraq plans a pipeline to link southern oilfields in Maysan province to major export storage depots and China Petroleum Pipeline is close to winning the $650 million contract, a senior Iraqi oil official said on Tuesday.
Saudi Aramco plans use a record number of rigs this year, more than 170, to search for unconventional gas while drilling for oil needed to maintain the worlds biggest spare capacity cushion, three industry sources in Saudi Arabia said.
Imperial Oil Ltd said on Tuesday that startup of its new 110,000-barrel-per-day Kearl oil sands mine has been delayed by cold temperatures in northern Alberta but that it still expects production to begin early this year
The United States now gets so much crude from its own shale deposits that Canadian exporters are selling as far afield as Europe, showing how deeply the U.S. energy revolution is transforming global oil flows.
U.S. commercial crude oil stockpiles were expected to have risen last week due to higher imports, a preliminary Reuters poll of six analysts showed yesterday.
In early trading today natural gas prices are trading at $3.6 by gaining more than 0.50%. Colder weather in the US is helping to support demand. While energy demand is expected to increase as nuclear capacity has declined by more than 150Megawatt as reported by to U.S. Nuclear Regulatory Commission data
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Originally posted here