Crude Oil Trading Volatile but Stays in the Black
November 2nd, 2009 Posted in Oil and Precious Metals
Crude oil prices rose but were unable to keep their daily high in today’s trading as equity market were choppy and the dollar weakened. Driving prices up were better than expected manufacturing data from the U.S. Prices have appreciated despite worries of a lack in fundamental data supporting the higher crude prices.
Oil traded as high as $78.62 and is currently floating near the $78 price range.
Stocks on Wall Street rose higher during today’s trading after the ISM Manufacturing PMI data was released. The key industrial performance indicator was stronger than expected, coming in at 55.7 after beating the predicted output from market economists at 53.1.
The price of the commodity has been very volatile, but it is making another push higher towards the $80 price level. Market forces have been attempting to bid up the price, but some are calling the rising prices unsustainable given the economic fundamentals of the global economy.
Positive manufacturing data released today and higher than expected GDP from last week may have given crude oil a short term burst of energy, but the rally may only be due to the waning effects final government stimulus package. Once the government turns off the faucet, the economic situation could begin to deteriorate, sending demand for crude oil south.
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Tags: Commodities, Crude Oil trading, dollar, Forex Trading
