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US Senate approves a bill to stop stockpiling the Oil
The US Senate voted to stop stockpiling of oil, US buys 70,000 barrels of oil everyday to create a strategic reserve that can be used in case of emergencies. Even though 70000 is a small number compared to the 21 million barrels of oil that US consumes everyday, it will still be step forward in reducing the Oil Futures.The House also passed a bill to stop stockpiling while the price of oil is more than $75 which probably isn't going to be sometime soon.
Dollar starts to hit back
The US dollar after hitting a low against all currencies has started to fight back(1 dollar = 41.85 Rupees, let it hit 45 and I am going to transfer all my money back home :) ). Part of this is because there seems to be increasing stability in the Financial market. Federal Reserve also seems to be done with the rate cuts and that should help the dollar.
International Energy Agency reports drop in Consumption
Higher gas prices have led to a drop in consumption of gas in developed countries. The CPI (Consumer Price Index) suggested that gas prices rose only 1.2 percent after adjusting for seasonal changes in gas prices (Gas prices increase as summer marks the driving season in US).
All these factors should lead to a drop in the Crude oil futures from its daily record breaking prices.
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