Commodity Daily News

Crude Oil Remains Above $108 a Barrel

The price of crude oil came off a 2-1/2 year high during Asian trading, despite continued violence in the Middle East and positive US data released last week. At the close of the New York session yesterday oil was trading close to $108.50 a barrel, its highest price since August 2008. The commodity is currently trading steadily at just over $108.00.

Analysts attribute the spike to a combination of global factors, including violence in Libya and a positive US jobs report released last week that has increased demand in the world's largest oil consuming country.

Turning to today, a slow news day will likely have little impact on the price of oil. Traders will still want to pay attention to the US ISM Non-Manufacturing PMI, scheduled to be released at 14:00 GMT. A positive figure will likely continue to increase demand in the US and further drive up oil prices. In addition, any escalation in violence in Libya is likely to increase supply side fears among investors and could lead to a spike in prices.