Geopolitical factors may affect oil prices

A mixed bag from the EIA data released yesterday failed to offer any real direction to the markets.

Whilst crude stocks jumped by 1.7mio bbls - a larger rise than expected, gasoline stocks plunged by nearly four times the 1.2mio bbl consensus forecast. Brent crude traded down to the $116 level before recovering before the close. This morning the front month contract begins at around the $117.30 level.