Commodity Daily News

Crude Oil Rises above $81 on Manufacturing Data and a Lower Dollar

Spot Crude Oil prices moved higher by almost 2% during Monday's trading, surpassing the $81 mark. This is the first time in two months the price has reached this level. Driving the prices higher was better than expected manufacturing data from the U.S. and a dollar that traded lower.

The price of the commodity has been rising as hopes of a global economic recovery ensue. Adding fuel to the fire was a weaker dollar. The EUR/USD traded higher today, trading near the 1.4450 level. As the dollar weakens, crude oil prices typically rise as the price of crude is denominated in dollars. Another factor in the price rise of crude yesterday may have been the cold front that has moved into the Midwestern United States.

Today's trading may be determined by the release of the U.S. Pending Home Sales numbers. A reading above the expected 2.3% decline could help persuade traders of an improving U.S. economy with an increase in crude demands. Traders may want to be long on spot crude oil today.