Crude oil enjoys recovery after consumer confidence report

27/05/2009

Yesterday's (May 26th) crude oil lows enjoyed a more buoyed recovery later in the day after a report revealed that US consumer confidence has improved.

Bloomberg reported that after the Conference Board's Consumer Confidence index experienced its biggest gain since April 2003, the price of oil followed the stock market in climbing higher.

Crude futures declined earlier in the day after speculation that this week's Organisation of the Petroleum Exporting Countries meeting will maintain production quotas.

At 11:64 Eastern Time on the New York Mercantile Exchange, crude oil for July delivery rose 3 cents to $61.70 (£38.7) a barrel.

Futures earlier dropped to the lowest since May 19th to stand at $59.53, the report noted.

Tony Nunan, risk manager at Mitsubishi Corp in Tokyo, recently commentated that traders are looking to find a strong price range for crude oil and are in a bullish mood.