Oil Above $92
Speculation that the Federal Reserve increase liquidity by providing cash to banks has led to a rise in the price of oil. This increase in oil price appears to be based on an expected increase in US energy demands.
“Oil and gold prices rallied strongly on Wednesday following news that central banks planned to co-ordinated their efforts to improve liquidity in global capital markets.” - FT.com
Against Expectations
The rise in oil goes against previous expectations of a significant fall this week. However, several key figures have been released so far this week, including the US interest rate cut of a quarter percent - expected to stabalise the economy as we head in to 2008.
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