The oil price that has been fluctuating in the past
week, got the much needed boost for stability with the latest crude oil draw;
the US crude oil inventories have gone down by 9.9 million barrels to the week
ending, January 22.
The latest data released by the EIA, the US Energy
Information Administration, gives the investors the confidence to carry on
investing in the sector, as there are plenty of uncertainties hovering over the
progress.
The US crude oil inventory draw has been a reliable
indicator when it comes to gauging the movement of the oil price; although,
there was no immediate positive trend of the oil price after hearing the news,
market will react positively in the next few days – in line with the existing
pattern.
Although, the expectation was for a revival of the
oil supply into the markets from the key players like Iran, Libya and Iraq,
there are no sign of it happening in the near future.
Israel, on Tuesday, dashed hope of Iran coming back
from the cold; Libya and Iraq, meanwhile, decided to cut the output for
February.
From the supply perspective, the conditions are
conducive for crude oil price to rise – once again.
