Crude Oil futures today gained value, 62 cents to $87.56 for the March contract in New York, the first time in five days, on the back of stockpiles declining in the US, the worlds largest consumer.
Last week inventories fell 558,000 barrels to 346 million barrels. The recent turmoil in Egypt had raised fear of a global energy crisis, with the possibility of the Suez canal being closed, a trading route which see 3% of the worlds oil pass. Prior to todays gain, oil has fallen the last four days, the most since November 2010.
Analysts have indicated that 2011 prices are likely to continue to rise, as China has raised rates due to increased inflation of 4%, and the economy expanded 9.8 percent in the fourth quarter. Chinas fuel demand will therefore increase to 4.8 percent in 2011 to 9.79 million barrels a day.