Commodity Daily News

The Price of Crude Oil Soars

Just when investors thought it couldn't get worse, the market drops and creates a record jump in the price of Oil. The price of black gold made history yesterday as it jumped $25 in one day. This price explosion did not go unnoticed by traders. As investors gambled on the direction and future strength of the market, the price of Crude Oil became a stronger currency-hedge for traders. After experiencing a significant drop in price, falling as low as the $91 mark last week, the price of Light Sweet Crude unexpectedly reversed and began an upswing which has done nothing but gain strength.

The uptrend does not appear to be losing momentum; however, if the USD rallies, we may see some leveling-off in the price of Oil. Adding to the upswing in the price of Oil yesterday was the expiration of the contracts for October delivery of Light Sweet Crude. As the contracts for November kick off, traders may see some signs for a reversal. Today, on the other hand, traders should note the direction of the USD during and after the speeches delivered by Bernanke and Paulson as the dollar's movement is typically a strong indicator for the direction of price of Crude Oil.