Crude oil prices steady after GDP surge

30 October 2009

Crude oil prices were moderating during electronic trading on the New York Mercantile Exchange (Nymex) this morning (October 30th) after a sharp spike seen yesterday in the wake of the latest US gross domestic product figures.

During the Asian trading session, both heating oil and crude prices moved lower, with the headline Nymex oil contract slipping back below $80 (£48) a barrel ahead of the physical opening of the market later today.

Despite these moderate losses, crude oil prices are set for the largest weekly gain seen in five months, with a flurry of buying activity yesterday helping to wipe out losses earlier in the week.

Prices rose by $2.41 a barrel during trading yesterday after a report from the US Commerce Department showed the US economy grew 3.5 per cent in the third quarter of the year, outstripping expectations.

The news sparked a widespread movement into crude and heating oil futures, with traders expectant that there will be a further recovery in domestic, commercial and industrial demand for petroleum products.

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