Saturday, April 17, 2010
OIL - Unemployment Numbers Sink Spot Crude Oil
Spot crude oil prices dropped following worse than expected U.S. new unemployment claims. Prices rose prior to the negative unemployment numbers after Chinese GDP data was stronger than expected. This followed a volatile trading day after U.S. crude oil inventories showed crude oil stocks declined.
Concerns still persist as the economic picture has not improved as fast as many traders would like. A surplus of supply still exists and many oil refineries continue to operate below capacity. Further fundamental numbers will be needed to give traders a reason to bid spot crude oil prices higher. Until then, spot crude oil may find support at $86.30.