Oil bulls sent oil prices back above US$90 a barrel but oil remained in a trading range as the Fed eased rates by a 1/4 point in an anticipated move. Earlier in the day, Light, sweet crude for January delivery on the New York Mercantile Exchange traded as high as $90.55 but was unable to break resistance at $90.73 as oil remained in the trading range which it has been for the entire month.

One trader commented that the market obviously anticipated the Fed move but weekly inventory statistics would have to be the impetus to move the market out of the range. The Energy Department is scheduled to release its report tomorrow at 10:30AM EST. Other traders saw the Fed move as a neutral event since the Fed move would have a dragging effect on the dollar but would also bolster the U.S. economy. Earlier in the day, news about pipelines in the Midwest being shut due to severe weather sent prices higher.

In other news, the Energy Information Administration said in a report released on Tuesday that supplies will tighten as the EIA expects inventories of the U.S. and other industrialized nations to drop to 49.3 days of expected supply by next February.  Global petroleum use will increase next year from 1.38 million bpd to 87.16 million bpd according to the Agency.