FOREXYARD: Forex News Blog | |
| Posted: 24 Dec 2010 11:34 AM PST
The price of spot crude oil rose to a two year high on Thursday, moving above $91 a barrel following the release of better than expected economic data. The strong US economic reports hint at a US economy that appears to be in recovery mode. At the end of the day, the price of spot crude oil was trading at $91.42, up from an opening day price of $90.57. This is the highest price spot crude oil has been traded since the fall of 2008. Driving the price of spot crude oil higher was the release of strong US weekly jobless claims. This past week's numbers were better than expected new job benefit claims falling to 420k from 423k. Economists had expected a release of 421k. Also adding to the positive US economic sentiment was better than expected core durable goods orders. In the month of November, core durable goods increased a strong 2.4% with economists forecasting a rise of only 1.7%. A stream of improving data released from the US has been seen, with the lone exception the November non-farm payroll numbers. The release of better than expected economic data shows an improvement in the US economic picture and an increase in positive sentiment. This has traders buying crude oil and sending the price higher by 13% since mid-November. Further price gains may occur should the stream of US economic data continue. The price of spot crude oil may soon test the psychological $100 barrier at the start of next year's trading. |
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