NEW YORK (TheStreet) -- Crude inventories climbed higher by 460,000 barrels, which to many investors, seems likely to have bearish implications for oil prices. But since the result was lower than expected, oil prices rallied on Wednesday.
West Texas Intermediate crude oil climbed $1.74 to $78.88 per barrel, while Brent crude prices climbed 39 cents to $83.21 per barrel.
According to BRG Brokerage's Jeff Grossman, the pop in oil prices really shouldn't be all that surprising, given the huge decline over the past month.
The oil market has been "so depressed and so beat up" that the inventory report would have to have been "ridiculously bearish" in order to keep the price of crude from rallying, Grossman explained.
Following this price action, Grossman says he is now a "buyer on the dips," rather than a "seller of the rips."
Still, there is some resistance near $79.50 per barrel, Grossman added.
Despite all of the positive news for the U.S. dollar -- including foreign stimulus and the recent election results -- a lower dollar will bode well for oil. Why? Oil can "easily" rally to $82.50 per barrel if the greenback weakens in the near-term, Grossman concluded.
-- Written by Bret Kenwell