Oil investment splits the day between gains and losses

Oil prices managed to pare down some of the massive losses they have suffered over the past six days today, as the US Department of Energy reported a considerable drop in the nation’s stockpiles. Though the relief of some of the glut dominating storage hubs in Cushing, Oklahoma bolstered oil investment, the commodity is still plagued by a slower than expected economic recovery from the West.

Investments in West Texas Intermediate rebounded back to a $96.09 oil price per barrel in New York after tumbling as low as $95.17 earlier in the session.

Brent prices managed to hold more or less steady at $112.20 per barrel in London.

Economists and traders fretted over the fact that the relief in inventories is likely short-lived, since despite the fact that gasoline and distillate stocks are significantly down, crude itself is still in drastic oversupply. As a result, the short term prognosis or crude oil investment is a rather grim one, with more sharp downturns expected.

The past six days have seen the largest sell off of crude oil stocks this year, with the bulk of the fuel’s investors fleeing towards safer havens until both Europe and the US manage to bump up demand.

The new governments in France and Greece have placed doubt upon the region’s potential recovery from debt, and have consequently made investing in oil a crapshoot as far the euro zone goes. The new socialist president of France in particular has specifically vowed to halt the severe austerity measures currently being taken by the nation in order to bolster the economy.