Recent move of oil has reflected rising doubts over sustainability of US and world post recession growth. Slowing world economy lowers demand for energy and fuels. After steep correction lasting entire August at the beginning of September WTI is showing some signs of upward momentum. Still US inventories are quite big number (3.4 m for August) although slowing from 4.1 m barrels. This stock is fact due to slower demand trough summer months. Coming heating season is rising expectations for positive move of the price.
From technical point of view WTI is consolidating just in line with the capital markets. Crude price is below 200 MA which leaves it room to grow but main price driving factor here are economic recovery expectations. I am expecting price consolidation to continue next 2 months with possible target $87 per barrel.