Wednesday, 22 Dec 2010

Crude Oil Hits a 2-Year High

Crude oil rose to $90.70 a barrel on Wednesday's trading session, its highest level in more than two years. Crude began today's session at around $89.80 a barrel, and rose consistently as the trading day progressed.

Crude strengthened today after reports showed that U.S. supplies dropped more than expected, and the economy grew more than previously estimated in the third quarter. The U.S. Inventories report showed that the number of barrels of crude oil held in inventory by commercial firms during the past week fell by 5.3M, as opposed to the previous week.

Looking ahead to tomorrow, traders are advised to follow the leading economic release from the U.S. as they are likely to have a significant impact on the market. Special attention should be given to the Durable Goods Orders reports, Unemployment Claims and New Home Sales.