What's Moving the Oil Markets?

•Global crude futures traded slightly higher Thursday as the market awaited the latest round of US inventory data due out later in the day. At a typically quiet time of year, many market players have decided to bridge the two holiday weekends, thereby reducing trading activity further, brokers said. "Things are generally quiet but there has been some activity still by the hedge funds. They have come in a few times and sold the market," one broker said.

•Analysts polled by Platts were expecting to see a 2.4 million barrel decline in commercial crude stocks. The closing of the Houston Ship Channel on numerous occasions last week caused US crude imports to take another nosedive. Market participants said that a larger than expected draw in crude stocks could lead to a particularly strong response in Brent crude futures prices. "We're near the end of the month and it's the time when North Sea producers start looking at hedging their physical production with the futures," one broker said. "This normally means they'll buy the futures and we haven't seen much of that so far this week when the odd dip has occurred. So if we get a really big draw in crude and nominal product numbers then Brent could really rally."

Updated: 12/28/07