Commodity Daily News

Spot Crude Oil Jumps 2.5%

The price of spot crude oil skyrocketed by 2.5% in trading yesterday as traders put the European fiscal crisis behind them at least in the short term and focused on an improving US economy as well as a rumor of the US supporting the IMF in any European financial solution.

A high of $86.94 was reached yesterday; the highest price spot crude oil has traded in two weeks. Spot crude oil finished the day at $86.37, up sharply from its opening day price of $84.40.

US economic data was a heavy influencer on traders as US private payrolls reported better than expected numbers as well as an increase in US productivity. Also helping to drive the price of crude oil higher was a weaker dollar. The combination of positive economic data and a falling dollar pushed traders into the high yielding commodity.

Surprisingly, weekly crude oil inventories disappointed traders with inventories rising by 1.1m barrels on expectations of a decrease of 0.8m barrels. The negative reading however failed to halt the rally in spot crude oil prices.

In order for spot crude oil prices to continue the rally the price will need to breach the $87.10 resistance level on its way to test the yearly high of $88.34.