6th November 2014
While multi-year lows were experienced in crude oil trading yesterday, overall it appears that the price slump is over… for now, at least.
The day began badly with weakening services sector growth in China adding to an earlier report about sluggish factory orders. Once Europe woke up, it was revealed that business growth missed estimates and remained close to September's ten-month low.
However, the US crude price performed a volte-face once the EIA revealed its inventory data for last week. It showed that stockpiles increased by just half a million barrels, rather than the anticipated 1.9 million.
That propelled crude oil trading up from its earlier lows – US crude having been at its lowest level for three years earlier in the day. However, progress was stalled by mixed American data, with the headlines showing that more jobs were created, but the non-manufacturing index missed its target.
Having passed $79 after the EIA's announcement, at 0800GMT, the US crude price sat at $78.33 a barrel.
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