Spot Crude Oil Trading Jumps on Inflation Data
February 19th, 2010 Posted in Oil and Precious Metals
Spot crude oil prices jumped during Friday’s New York trading hours after the commodity traded lower for most of the day. Spot crude oil traders shrugged off yesterday’s increase in the Federal Reserve discount rate after the release of the U.S. CPI.
Spot crude oil trading was higher this afternoon, with prices rising to a high of $80.11 in the New York trading session after opening the day at $78.41.
The price of spot crude oil jumped after the Department of Labor released its consumer price index (CPI) that showed prices rose 0.2% in January. This is the fifth consecutive month of rising prices. Core consumer prices (Core CPI) excludes the prices of food and energy costs which are very volatile and fell by 0.1% last month. This was the first decline since 1982.
In light of the lower than expected inflation, the EUR/USD rose to 1.3585 from an opening price of 1.3482. This came on the heels of the Fed’s surprise hike of the discount rate. As the dollar weakens, spot crude oil prices typically rise.
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Tags: Commodities, Crude Oil Inventories, dollar, spot crude oil, spot crude oil prices, spot crude oil trading
