Inventory Data Drives Spot Crude Oil Prices Higher
December 23rd, 2009 Posted in Oil and Precious Metals
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Spot crude oil prices were trading higher during the New York trading session after the release of the mixed economic data. While some numbers offered a bleaker outlook on the economy, the weekly crude oil inventory numbers handily beat market expectations which spurred a renewed interest in spot crude oil buying.
Earlier today, the Energy Information Agency released its weekly crude oil inventory data. Inventory numbers showed national crude oil stocks declined by 4.9M barrels. This was a much more significant draw down than the 1.5M barrel decline which the market expected.
This came as a positive surprise for the spot crude oil market, as the price of spot crude oil rose to a daily high of $76.44, from an opening price of $74.30. Currently spot crude oil is trading at its highest level in 20 days.
Spot crude oil also rose after the release of the new home sales numbers. This may be due to the affect of the dollar. The greenback dropped sharply after the release of the new home sales numbers which failed to meet their expectations from market economists. The new homes sales data is a key figure in the economic recovery in the U.S. The EUR/USD is currently trading at a weekly high near the 1.4330 level.
As the dollar fell, this added a bit of momentum to the rise in crude oil prices, multiplying the price increase in the commodity. Typically a falling dollar will help influence a rise in the price of spot crude oil prices.
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Tags: Forex Trading, spot crude oil, spot crude oil prices, spot crude oil trading
