Commodity Daily News

Crude Oil Breaks Past $89.50, but Meets Resistance from Rising USD

After spiking towards $89.60 a barrel, the price of Crude Oil appears to have settled over the last day and a half. The price of black gold has entered a mild decline on USD gains and currently trades just under $89 a barrel.

As expected, the winter heating oil season in the northern hemisphere has driven oil prices higher, appearing to have broken out of the $80-88 price range. However, with the US dollar on the rise, commodity gains may become muted as the week wears on.

With little news expected out of the euro zone and the United States today, traders should focus their attention on the movements of the EUR and CAD in response to the ECOFIN meeting in Europe and interest rate announcement in Canada. These events will have the strongest impact on USD values and thus the most effect on oil prices, albeit indirectly.