Oil rose briefly today following an inventory report which indicated lowering supplies of crude oil. However, Cushing Oklahoma held its levels and there was an unexpected rise in heating oil. Heating oil supplies should continue to rise in the coming weeks due to much warmer than normal temps in the northeast. As the winter continues it is also likely that heating oil consumers will lower the thermostats in their houses. The rise in gasoline and heating oil supplies should not have come as a surprise since refining activity had increased. This is a sign that oil prices should dip in the coming weeks as demand will easily be met by supply. The geopolitical forces in Pakistan and Nigeria should not be enough to keep oil at $100. They are only temporary disturbances and are not of the greatest concern of oil traders.
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