Oil Price Rally

Oil prices had their best gain in three months today, despite the fifth week of high oil stock inventories. The U.S. Energy Information Administration (EIA) reported on Oct 27 an increase of 3.4 million barrels in crude oil supplies. This was actually less than the Wall Street Journal had predicted (3.7 million barrels) and less than American Petroleum Institute’s prediction of 4.1 million barrels. “With traders seeing a series of huge builds over the last 4 weeks or so, and expecting another one, the market was rather oversold.” When the higher inventory numbers didn’t occur, oil prices rose.