|News||Crude trades above $86 its highest in 17 months|
|Analysis||Crude traded this morning around $86 per barrel its highest in 17 months, supported by US data yesterday that showed improvement in the services sector; adding more signs for the strengthening recovery.|
Meanwhile, crude managed to gain in the evening session after the ISM Non Manufacturing index rose at a faster pace since 2006; insuring the improvement in the US services sector, which makes up 90% of the US economy, thereby supporting expectations of a close economic recovery in the world's biggest economy.
The improvement witnessed in the services sector thrusts more jobs into the economy, which seemed apparent in the last US jobs reports that had spread a wave of optimism, especially after employment levels gained in the US in a way that surpassed expectations of a rise in lay offs.
Oil prices were supported by the dollar plunging against a basket of major currencies, where investors are leaning towards purchasing high yielding commodities as confidence levels rise in financial markets.
Meanwhile, US stock indices climbed yesterday where the Dow Jones Industrial Average gained by 0.43% to trade around 10973.55 it's highest in 11 months; supporting oil prices to incline around $86.87 per barrel.
The S&P GSCI index closed at 546.56 after rising by 8.84; whereas the RJ/CRB commodity index also gained by 3.08 to close around 276.43.
In NYMEX as of 03:00 EST; heating futures gained to record $226.760 per gallon by $0.010; motor gasoline is trading around $235.020 per gallon after rising by $0.037 to record levels around $4.314 per 1000 cubic feet. In London, Brent jumped by $0.120 to record $86.00.
Crude opened today around $86.70 per barrel recording its highest around $86.80 and lowest around $86.30, where it is currently trading around $86.50 per barrel.