NewsCrude hovers above $88 on improved US economic data
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AnalysisCrude traded above $88 per barrel today as the dollar weakens after an unexpected drop in US jobless claims in housing starts and thereby strengthening demand outlook.

Crude today hovers around $88 per barrel recording its highest around $88.34 and lowest around $87.80, while it currently is trading around $88.01 per barrel.

Oil rose following the US Labor Department stated that jobless claims plunged 420 thousand, higher than forecasts of 425 thousand, recording their lowest in three weeks, as traders ponder prospects for demand on oil next year. While, housing starts slightly rose last month and thereby reversing the two-month drop.

Crude yesterday traded around $88 per barrel recording its highest around $88.63 and lowest around $87.79 per barrel, closing around $87.79 per barrel. Futures fell 1% yesterday, as the dollar weakened against the euro as investors’ are more optimistic about the containment of the European debt crisis, thereby raising the appeal of commodities; while traders closely eye latest US figures for housing starts and jobless claims in search of clues regarding the economic recovery strength.

The global oil market will be closed for the next two Friday’s due to the Christmas and New Year holidays and thus leading to low trading volumes in the upcoming two weeks.

As for NYMEX as of 03:47 EST; motor gasoline rose $0.21% recording $230.910 per gallon; heating is trading around $248.380 per gallon inclining $0.30; whereas natural gasoline shed $1.41 to record $3.991. In London, Brent futures gained $0.39 to record $91.960.