Crude prices are still affected by the bullish wave dominating commodities, supported by signs of improved prospects for the recovery and the global economic conditions, which are on the path of exiting from the worst economic crisis since World War II. We see that crude is trading near its highest levels in nearly five weeks, which will start feeding through pipeline pressures across numerous countries as we have seen noticeable decline in prices throughout the last period.Crude rose by almost 0.9% yesterday, due to support by the Chinese government's statements, which upgraded their expectations for the Chinese economy to expand beyond 8% throughout 2009. Oil ended yesterday at $78.64 per barrel after opening at $77.80 and recording its highest at $79.12 per barrel.In addition to improving expectations for the global economic performance, weather conditions have currently contributed in supporting crude prices, especially after the snowstorm that hit the U.S and Europe recently; therefore, boosting demand on oil, specifically from the United States since it is considered to be the world's largest oil consumer. The dollar also decline slightly against a basket of foreign currencies supporting the continuation of the upside move for oil and commodities.
The dollar index opened trading yesterday at 77.76 levels to close at 77.63, at a time we see it trading today at 77.47 levels, after it had opened its trades at 77.63. Meanwhile, crude today is ascending within a narrow range at a time we witness it declined in the last hour, amid weak year-end volume. Crude is currently trading around $78.69 per barrel, opening trades at $78.59 where we expect it to face more inclines, especially incase technical resistance levels are breached by it that are at $79.18 per barrel.
Forex Trader Library
Receive over 15 hours (8 CD's) of our best Forex trading education in one package! Containing the newest Advanced Forex CD, this education pack focuses on exactly what you need to know to become a successful Forex Trader.