Asian markets report rise in crude oil investments
Crude oil futures gained ground on the Asian commodity index today, after posting severe losses during yesterday’s session amid worries that Europe would not be able to come up with an apt resolution measure for its debt crisis and rising crude oil stockpiles in the U.S. The oil commodity futures sank more than 3% yesterday, dashing the hopes of investors that the U.S. economy was in recovery mode, and coming dangerously close to falling below the resistant $90 per barrel mark. However, optimistic reports from the U.S. Energy and Commerce Departments and the latest data from the European summit outcomes triggered a surge in oil investments, forcing the commodity oil to move up the charts, recouping some of their day’s losses.
West Texas Intermediate crude oil prices, the recognized U.S. benchmark product, gained $1.11 for delivery in December and settled at $92.01 per barrel in electronic trading on the New York Mercantile Exchange. The commodity futures fell as low as $90.20 at one point during yesterday’s trading, when reports of a 5 million barrel surge in U.S. inventories hit the sector. However, further stipulation surfaced the fact that though crude oil supplies were up, overall fuel stockpiles continued their month-long downward trend. Positive retail sales figures and a thriving industrial sector in the nation also propelled oil investments. Prices for the commodity oil are up 0.5% for the year.
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Brent crude oil futures for settlement in December rose 70 cents and currently sit at $110.09 per barrel. The European benchmark fell well below the resistant $110 threshold early yesterday, yet managed to climb back up today. Points of resistance on the commodities market traditionally signify a drastic rise in demand. The margin between Brent and WTI crude oil is now well below $20, after reaching a record high $27.89 earlier in the month.