Oil is volatile ahead of US weekly inventory data

<p>The volume in oil trading has moved to the December contract, which is up $1.78 to $87.14 today.</p><p>It traded as high as $88.57 just a few hours ago before sinking to $86.25 at the lows. The market is volatile as it tries to figure out what is happening in the Middle East and how this conflict will end (or escalate). </p><p>The next hurdle for crude traders comes at the bottom of the hour with EIA inventory data. A huge 10.17m barrel build last week stung oil for a short time but it's since recovered.</p><p>Late yesterday, the API reported:</p><ul><li>Crude -4383K</li><li>Gasoline -1578K</li><li>Distillates -612K</li><li>Cushing -10005K</li></ul><p>The consensus for the upcoming report is:</p><ul><li>Crude -300K</li><li>Gasoline -1097K</li><li>Distillates -1360K</li></ul><p>US (and global) distillate inventories are particularly tight so keep a close eye on that number.</p>

This article was written by Adam Button at www.forexlive.com.