Crude Oil Moves Up Following Chinese Interest Rate Cut

Crude oil saw gains throughout European trading yesterday, after a surprise Chinese interest rate cut was taken as a sign that global demand could go up in the near future. The price of crude oil was up by over $2 a barrel, eventually reaching as high as $86.98 during mid-day trading before staging a mild downward correction. The commodity eventually stabilized around $85.85. As we close out the week, oil traders will want to pay attention to the US Trade Balance figure at 12:30 GMT. With analysts predicting that the figure will show some improvement over last month, the news could result in modest dollar gains during afternoon trading. If true, investors may take the news as a sign that oil demand will go up in the US, which could help the price of crude move up further.

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