|News||Crude gains in the early session to record its highest level since November 2008|
|Analysis||Crude rose this morning above $85.35 per barrel to record it's highest since November 2008, supported by dominating optimism in financial markets after US data insured the beginning of stability in the jobs market.|
The US economy was able to add 162 thousand jobs in March, compared to the previous 36 thousand layoffs that were revised to 14 thousand lost jobs; the unemployment rate stabilized at 9.7% inline with expectations. The stability in the US jobs market supports all expectations of the US economy making its comeback; oil prices are playing an essential role in supporting the consumption rate, which makes up two thirds of the GDP, specifically after the economy was able to exit the recession cycle to record 5.6% last on an annual rate.
On today's economical agenda, we await the ISM Non Manufacturing index for March, where it is expected to ascend and therefore signaling ongoing improvement in the services' sector performance, the biggest contributor in US's GDP.
In addition, several global economies were able to exit the recession, which supports demand levels on crude since is it considered to be a basic substance that enters all industries. On the other hand, a rise in inventory levels in major countries and weakened demand levels may stand as a barrier without achieving the expected recovery in prices.
In NYMEX as of 03:00 EST; heating futures rose to record $223.610 per gallon by $1.940; motor gasoline is trading around $234.330 per gallon after gaining by $1.960; whereas natural gas receded by $0.08 to record $4.064 per 1000 cubic feet. In London, Brent jumped by $0.540 to record $84.550.
Crude opened today around $83.35 per barrel and climbed to record its highest around $85.80 and lowest around $83.20 per barrel, where it is currently trading around $85.15 per barrel. We can expect trading levels today to remain low due to the Asian and European markets celebrating Easter, after markets closed last week on Good Friday.