Wednesday, 24 Nov 2010

Crude Oil Rises To $84.00 a Barrel as U.S. Jobless Claims Drop

Crude oil gained about 300 pips on Wednesday's trading session, rising to $84.00 a barrel for the first time in eight days. After a very calm trading week, crude oil managed to breach the $82.00 resistant level, and soon after gained to the $84.00 level.

Crude oil advanced today for the most in four months following a report showed that U.S. Unemployment Claims dropped to the lowest level since 2008, boosting optimism that the economic recovery will accelerate. Jobless claims declined by 34,000 to 407,000 in the week ended November 20, beating estimations for 434.000 unemployment applications.

Looking ahead to tomorrow, U.S. banks will be closed in observance of Thanksgiving Day. Traders are advised to follow the updates regarding the Irish debt crisis, as any development on this issue is likely to have a large impact on the market.