U.S. government report indicating that stocks of crude, gasoline and distillates rose last week, affected the market for some time. But after traders shrugged off news that oil inventories are rising and refocused on the possibility of cold weather and reduced OPEC production draining supplies, oil prices rebounded above US$55 a barrel. Wednesday's late rally was caused by several factors: signs that OPEC producers are complying with their announced cuts, forecasts of snow storms in the Midwest and Northeast, and the rising belief that the recent downtrend is over.
On Tuesday, a federal government announcement to add to the Strategic Petroleum Reserve this spring by 100,000 bpd to boost the nation's emergency oil stockpile, sparked a price hike.
Light sweet crude for March delivery rose 33 cents to settle at US$55.37 on the New York Mercantile Exchange, after dropping as low as US$53.66 after the inventory report was released. March Brent crude on London's ICE Futures exchange rose 33 cents to settle at $55.43 a barrel.
25-Jan-07 
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