Crude oil prices attained a six-month high this past week, on new economic indicators signalling that the American economy's drastic contraction may be slowing considerably.

U.S. crude oil prices reached US$66.47 per barrel, a level not seen since early November of 2008. Brent North Sea crude oil rose $1.13 to finish the week at $65.52, having reached a peak of $65.70 earlier in the day.  The advance represents the single largest monthly gain in more than a decade, going all the way back to 1999.

Crude numbers began their sharp uptick soon after a report was released by the U.S. Commerce Department showing that the U.S. gross domestic product (GDP) fell by just 5.7%, almost a full half percentage point lower than the 6.1% that had originally be predicted by economic forecasters.  Oil was helped along by weakening of the US dollar against the Euro, which provided a further boost to the international commodities market.

Analysts predict that oil prices will continue to rise amid more positive international economic news, especially after strong months from economic giants in Asia, such as India and Japan. 

"Oil market participants' conclusion that the worst of the recession has passed and that a recovery in demand must be at hand was bolstered overnight by higher than expected first quarter growth in India and a sharp jump in Japan's April industrial production," said MF Global's John Kilduff.

"We've got a lot more optimism about the economic outlook than we did. The market is factoring in a recovery in demand by the end of the year," said Toby Hassall, an analyst for Commodity Warrants Australia.

Content courtesy of Wikinews.