Crude oil prices rose on Wednesday above $112 a barrel despite that a report from the Department of Energy showed crude oil inventories increased above expectations, while the U.S. dollar slightly eased against major currencies after the FOMC rate decision, and investors remain cautious ahead of Bernanke’s press conference.
The EIA report showed on Wednesday that crude oil inventories increased in the week ending April 15, by 6.2 million barrels, compared with median estimates of a 1.7 million barrels increase; nevertheless, the drop in oil prices was limited after gasoline inventories declined more than estimates.
We maintain our bullish outlook for crude oil prices, although we still expect volatility to dominate crude oil prices over the upcoming period, as we might witness some downside corrections, nevertheless, the bullish trend should continue for a while.
Thursday 12:30, the U.S. Commerce Department will release the advanced estimate for Gross Domestic Product for the first quarter of 2011, where GDP is expected to expand at an annualized pace of 1.8%, compared with the prior expansion in the fourth quarter of 2010 of 3.1%.
Thursday 12:30, the Jobless Claims for the week ending April 23, will be released, where last week jobless claims dropped to 403,000, where conditions in the labor market are still improving over a gradual pace.
Originally posted here
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