Commodity Daily News

Crude Oil Hits the $52 Level

Crude Oil rose to over $52 yesterday, before closing at $51.39, an increase of 150 pips or 3%. This marks a massive weakly gain for Crude Oil of about 13%. This is largely owed to signals of a possible economic recovery from the U.S. It appears that OPEC's unusual high level of discipline, is one of the other reasons for the high value of Crude Oil. OPEC managed to keep up to their estimations of the right amount of barrels produced per day, and as a result managed to halt the ongoing erosion in Oil prices.

High Crude prices are also owed to the significant drop in the Dollar. Thus Crude Oil is valued in Dollars, and as such, any downtrend of the USD is likely to generate a bullish trend for Oil. As for today, traders are advised to follow economic data, especially from the U.S, and even more importantly, follow the USD's movements against the leading currencies, in order to predict Oil's trend for today. If the Dollar will continue to slide, Crude Oil might reach $55 a barrel before the week ends.