Commodity Daily News

Crude Oil Surges on Inventory Report

The price of crude oil settled above $90 yesterday following better than expected private sector job numbers and a larger than expected drawdown in crude oil stocks.

Spot crude oil prices ended the day up at $90.28 after opening the day at $89.15.

Following the release of strong employment data, spot crude oil prices were bid higher. Later in the day momentum behind the bullish move increased with the release of the weekly crude oil inventory numbers from the US Department of Energy Administration. The weekly data handily beat market expectations with crude oil stocks declining by 4.2m barrels on expectations of a decline of 1.4m barrels.

The rally in crude could continue should the upcoming US employment releases come in on the positive side. Resistance is found at Monday's high of $92.56.