Spot crude oil prices rallied to a two-week high after the release of better than expected U.S. pending home sales. Prices jumped after the data release was seen by traders as an opportunity to buy crude after the positive economic data spurred the potential for higher future crude oil demand.
Crude oil prices rose today to $76.82 from an opening price of $74.68. Over the last two days the price of spot crude oil has jumped 5.5%.
The Pending Home Sales release is just one in a string of positive U.S. economic releases. Both last Friday's GDP and Monday's manufacturing data were better than expected, leading some spot crude oil traders to believe that future demand may begin to rise with economic improvement.
Today traders will be focused on this week's crude oil inventory data from the U.S. Energy Information Administration. Oil inventories are expected to rise by a meager 0.4M barrels. A data release below this level could help push crude oil prices up further, perhaps to the resistance line of $79.