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Crude oil bucked the negative trend on Thursday, rising 0.5% to $86.54 a barrel, despite renewed eurozone concerns knocking markets lower.
West Texas Intermediate (WTI) was supported by a report from the US Energy Department on Wednesday, which reported an unexpected drawdown in inventories. Supplies dropped 4.73 million barrels to 332.9 million last week, the lowest level in 20 months. Supplies were expected to rise 2 million barrels. Brent, on the other hand, pared gains following news that Libyan ruling council fighters had captured Qaddafi, who (according to Reuters News) later died of wounds suffered during his capture.
The latest events and drawdowns could be positive for WTI, especially if a solution to the eurozone crisis emerges over the weekend. From a technical level, it would be interesting to see if WTI can break through resistance of $90 a barrel; if it does then $100 a barrel could be the next target.
