|Analysis||Crude oil slightly changed after yesterday's jump when the commodity rallied above $80 a barrel on better-than-expected U.S. GDP. Prices inclined 3% on Thursday on recovery signs as the world's largest crude consumer emerged from recession. GDP for the third quarter in the U.S. showed a growth of 3.5% beating estimates. After the news optimism prevailed in markets, causing higher demand on riskier assets.|
Accordingly, U.S. stocks rose to the highest level in 3 months yesterday after the upbeat report; S&P added 2.3% to 1066.11 points. Asian stocks trailed the U.S. suit after unemployment declined in Japan. MSCI Asia Pacific Index climbed 1.8%, whereas Nikkei Index edged up 1.32% at the early trading.
On the other hand, the U.S. dollar stopped its rally yesterday after the upbeat data from U.S., Europe, and Asia which enhanced demand on higher yielding assets, resulting in a decline in the yen and dollar. The dollar index, a gauge of the dollar's movement's versus a basket of major currencies, dropped yesterday after 4 days of gains, while currently it is at 75.93 compared with the opening at 75.94. The dollar's decline gave the chance for oil to jump again close to one-year high.
Now, oil is traded at $79.80 recording a high of $80.17 and a low of $79.75, whereas the contract on Thursday added $2.41 closing at $79.87, while recording a high of $80.46 per barrel and a low of $77.03 per barrel.