Oil prices react to geopolitical pressures and fears
It would seem like the market is still very much dependent on the geopolitical pressures and fears over the drop of supply, much due to the death of Osama Bin Laden. There are signs of slow recovery, especially for the biggest consumers but there is an overall downbeat vibe over the course of the recovery.
It looks like the biggest consumers (China, Japan and US) have a negative outlook for demand. EIA reported a rise in the crude inventories which obviously has helped with the slowing pace of recovery but is again followed by weak consumption figures.
In general, the market seems to be still awaiting more figures coming in the next few days and particulary waiting for the European rate decision later today.