Oil flying high

Further falls in report inventories by the EIA saw increased upside in US oil prices, hitting a high of $106.66 per barrel.

Having traded to a high of $106.66, the high from March 2012 at $106.75 is in striking distance and it will be interesting to see if WTI can break this level.

Inventories have now fallen 5.1% in the last two weeks, however it also needs to be remembered that inventories are still well above their historical average.

Interestingly oil is now 3.5 standard deviations above its 50-day moving average ($96.36), the most overbought since February 2012.

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