Oil has increased in this week following reports showed fewer Americans filed claims for unemployment benefits, China’s manufacturing expanded for the first time in nine months and Australia’s jobless rate unexpectedly dropped in April 2009.
“We are getting a bit of a consistent run of slightly better-than-expected economic data out of the U.S.,” said Mark Pervan, a senior commodity strategist at Australia and New Zealand Banking Group Ltd. in Melbourne. “Oil is maybe moving to a higher trading range, pushing through what looked like a key resistance level of $55 a barrel.”
Oil is set to reach $62.65 a barrel in the near future and rally to $78 within six months as prices retrace the surge that commenced in 1998, as per the technical analysis by PVM Oil Associates Ltd.
On May 7, 2009, oil closed at $56.71, the highest settlement since November 14. 2008. Prices have increased 7.6% in the first week of May 2009, poised for the largest gain since the week ended March 20, 2009 and are up 28% in 2009.
Brent crude oil for June 2009 settlement gained as much as $1.33, or 2.4%, to $57.80 a barrel on London’s ICE Futures Europe exchange. It was traded at $57.27 a barrel at 11:24 a.m. Singapore time. The contract increased 32 cents, or 0.6%, to end the session at $56.47 a barrel, the highest settlement since November 10, 2009.
