Commodity Daily News

Crude Oil Hits $50 Mark

Crude Oil prices jumped a staggering $2 yesterday, hitting $50.55 a barrel, before closing at the $49.45 price level. This was owed to the good news coming out of the U.S. that the construction of new houses was up a better-than-expected 22% in February from a month earlier. This signaled to investors that the worst of the U.S. housing crash and recession was over, and that a recovery is in sight. Automatically, investors took advantage of this, leading to the bullish Crude prices.

The dramatic increase in Oil prices comes on the back of an OPEC meeting last Sunday, which was pessimistic about a global economic recovery. Ministers concluded at this meeting that they will delay any further supply cuts in Oil. In the coming days, Oil may climb further if the U.S. releases more positive economic data releases. Additionally, if the Crude Oil Inventories figures at 14:30 match forecasts or are better-than-expected, then Crude prices may hit $54 by the end of today's trading.