The price of spot crude oil declined yesterday for the second day in a row following mixed U.S. economic data. Spot crude oil prices ended the day at $76.57, after an opening day price of 76.93.
U.S. Core CPI came in as forecasted at 0.1%. The current account was better than expected, coming in lower at -109B on expectations of -120B. However, weekly unemployment claims were higher than expected at 472K on forecasts of only 452K. The Philly Fed Manufacturing Index was also significantly lower at 8.0 with a forecasted value of 21.1.
Recently spot crude oil prices have been taking cues from the equity markets. Yesterday's minute gains in the S&P 500 highlight this type of market behavior. With an absence of economic data on today's calendar, traders should be following the performance of the major equity indices to identify the daily trend of spot crude oil prices. A break of the $78.10 resistance level will put the price of spot crude oil above the 200 day moving average.