Last week the price of spot crude oil reached a 2.5 year high but finished the week lower. An improving global economy along with positive economic sentiment is driving commodity prices higher.
However, higher reported GDP numbers from China increases expectations of future monetary policy moves by China in order to stem the flow of inflation. Any tightening of Chinese monetary policy may limit growth rates as well as demand for commodities.
Crude oil prices stabilized on Friday following a sharp decline of 2.75% on Thursday. This may present a buying opportunity in crude oil as the price approaches the $87.20 support level as well as the rising trend line from the August low that comes in today at the same price.