Oil prices on the up again

Crude oil moved towards the higher end of the predicted pre-Christmas range yesterday on foot of weather factors and the Feds delivery of the expected quarter point cut.

An ice storm impacted the Cushing delivery point in Oklahoma and the fog which has hampered operations in Texas returned to interrupt operations.

Wti pushed above $90 with a comparable move in Brent to the $89 level. These factors are, however, transitory by nature and the EIA data out this afternoon is unlikely to inject bullish impetus sufficient to push beyond the $90/bbl resistance point.

The figures in the US will probably show a small draw on crude of around 250,000 barrels and the existent range of $86.50-90 will endure for a further session.