Wednesday, 1 Dec 2010

Crude Oil Surges, Trading Near $87.0 a Barrel

Crude oil gained over 300 pips in Wednesday's trading session, rising to the highest level in almost three weeks. Crude began today's trading near $83.60 a barrel, following two days of falling prices. However, crude managed to erase all losses, and reached as high as $$86.90 a barrel.

Crude oil rallied today following ADP employer services claimed that companies in the U.S. added 93,000 workers to payrolls in November, beating forecasts for a 70,000 jobs gain. This has boosted optimism that demand for energy in the U.S., the world's largest energy consumer, will increase. In addition, signals that the European Central Bank (ECB) will take action to prevent the region's debt crisis from broadening have also supported crude prices.

Looking ahead to tomorrow, traders are advised to follow the ECB Press Conference, which is scheduled for 13:30. The ECB is expected to reveal its plan to prevent the spread of the region's debt crisis. Heavy volatility is likely to be observed as a result.