Markets

Morning Crude Oil Market Report for 11/8/2010

December crude oil began with a positive start and reached its highest price level since May 5th. However, prices have reversed earlier gains this morning and seemed to be taking their direction from a stronger US Dollar. Some traders suggested that early gains in crude oil may have come from a new trade deal between India and the US that could expand trade to $50 billion this year, but a rebound in the US Dollar seems to be a factor that has spurred a round of profit-taking in crude oil. Meanwhile, the IMF commented over the weekend about higher crude oil prices and said that they posed little threat to the global economic recovery but that they are monitoring the affects of QE2 very closely. The Commitments of Traders Futures and Options report as of November 2nd showed non-commercial traders were net long 208,226 contracts, an increase of 3,672. Non-commercial and nonreportable traders combined held a net long position of 222,104 contracts, which represents an increase of 7,651 in their net long positioning. Crude oil prices rallied $2.50 since the release of the COT report, which came on an increase in open interest, indicating more longs have come into the market recently.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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