A barrel of crude oil was traded at $81.70 during yesterday's trading. Crude oil breached the $80.00 level for the first time in 3 months, following a 300 pips gain on Monday.
Crude oil soared yesterday as expectations for an economic recovery have boosted global equities. Oil rose for the third day following a better-than-expected release of the US Manufacturing Purchasing Managers' Index (PMI) survey. The survey reached 55.5 points, beating expectations for a reading of 54.2. In addition, companies such as HSBC Holdings Plc have reported higher than expected earnings.
The world-wide positive data creates speculations that global demand for energy will increase, and as a result boosts crude oil prices. It seems that for as long that the US and euro zone will continue to deliver positive data, crude oil might rise further as the dollar weakens.
Looking ahead to today, traders are advised to follow the leading publications from the US and the euro zone as these tend to have the largest impact on crude oil prices. Special attention should be given to the US Pending Home Sales report, which seems to be today's leading publication. A positive figure is likely to support crude oil prices further.