Now that fears over Syria and Libya have receded from the front pages, the squeeze that oil prices were under has reduced. This easing of global prices has given markets a chance to once again stockpile reserve supplies, as today’s US oil inventory figures of 4 million, as opposed to the expected 3.4 million, would appear to back up.
Global levels of peace are as stable as they ever are, which is helping to ensure that there is no panic being forced onto the market. At the same time, Saudi Arabia has shipped out its largest monthly quota of oil in the last fourteen months. Of course, the Organization of the Petroleum Exporting Countries has a few issues to resolve at home, with its leadership still not particularly clear.
Since the end of August, US light crude has dropped almost 10.5% to just above the $100 level. Although this is not a particularly important technical level, it is certainly an important psychological one.