Commodity News – Oil rises after EIA crude inventory falls and Greek austerity vote passes

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Oil prices surged after the EIA released crude oil inventories from the past week.

U.S. Crude Stocks fell more than expected by 4.4 million barrels compared to the prior week’s decline of 1.7million barrels of oil. The forecast was for a drop of only 1.5 million.

Meanwhile, crude prices were already on the rise since Monday of this week as optimism grew ahead of the Greek parliament austerity vote that was passed today and easing fears of a first euro zone sovereign debt default. As soon as the news was released just after 13:30 GMT, oil prices rose by a faster rate, coupled with the EIA inventory.

Immediately after the EIA data at 14:30GMT, crude oil jumped within a minute from $93.79 to $94.54. The price of crude oil is still rising and is currently trading at $95.27 versus Monday’s low of $89.61.

Greek Prime Minister George Papandreou won the parliamentary majority required to pass the austerity program, clearing a major hurdle in Greece’s bid to win access to international funding to avoid default. News the plan had passed, allowing a roll over of Greek government bonds, lifted stock markets and the Euro and boosted commodity markets.