Crude Oil ended higher Wednesday, reversing earlier losses late in the session, as investors focused on Dollar weakness and shrugged off a government report showing a rise in inventories. Energy markets have been looking to broader economic data for signs of an end to the recession and a potential rebound in Oil demand.
Optimism has helped lift Crude from below $33 a barrel in December, well off record highs near $150 reached in July 2008. Further support has come from a series of output reductions agreed to by the Organization of the Petroleum Exporting Countries (OPEC) last year.
Crude prices were also bolstered by a drop in U.S. distillate inventories and optimism that a slowdown in U.S. private job losses in July could signal a gradual turnaround in the economy. The Dollar weakness has been supportive for Oil prices; and as a result of the USD's new lows, a further increase in Oil prices above $74 a barrel seems almost inevitable.
