The weekly Wednesday oil inventory report will be released this week on Thursday, one day late, due to the Presidents' Day holiday. Oil closed above $100 for the first time in its history Tuesday, at $100.01.
"It's been a wait-and-see market today, for the most part," independent energy trader Jim Dietz told BloggingStocks Wednesday afternoon. "Neither bulls nor bears seem to want to make a major stand ahead of the inventory report, but we did trade above $100 again. If we close above it today, that would be a bullish sign." Dietz added that he is currently flat -- or has no open energy positions.
Other key energy commodities pulled back slightly on profit-taking, Dietz said. Heating oil closed down 1 cent to $2.75 per gallon, unleaded gasoline dipped 2 cents to $2.58 per gallon and natural gas fell 1 cent to $8.97 per million BTUs.
Classic battle
Dietz said the oil market "is in classic battle" between those who believe oil fundamentals suggest slowing demand in the months ahead (the bears) and those who say the cross-sweep rise in commodity and raw material prices suggest increased strain on resources, and higher prices, in the months ahead (the bulls).
"Thursday's inventory report, if it really exceeds expectations, will help to calm this market," Dietz said. Economists expect U.S. weekly crude inventories to rise by about 2.3 million barrels.
Oil hit an all-time high, in inflation-adjusted terms, of $102.80 per barrel in April 1980.
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