Crude Oil Turning Higher

Don't look now but the price of crude oil is rising again and the future for the black gold commodity is looking higher. The December 2010 Nymex futures contract soared to a new 6 month high to settle at $88.48 a barrel.

Bloomberg is reporting that US crude inventories levels have dropped 3.27 million barrels while the Chinese have increased production upwards of 12% from October.

On a technical analysts view, crude oil should retrace 50% from July 2008's high to near $90 barrel before the end of the year. Goldman Sachs said earlier in the week that oil "will rise substantially by 2012".

This is not good news for Americans who will be emptying more of their wallets at the pump come this Christmas.