Crude Oil Rises Slightly as Supplies Tighten
Crude oil futures rose today, bolstered by tightened supplies coming from the North Sea. Investors seem to have turned a temporary blind eye to the fact that Standard and Poor have just slashed Italy’s credit ratings.
Brent crude oil futures are currently trading at a $1.25 increase, which amounts to 1.1% and which has placed the oil commodity at an impressive $110.39 per barrel. The New York Mercantile Exchange numbers also show progress, as crude oil futures went up 68 cents and now stand at $86.38 per barrel.
Monday night closed on a bleak note for the commodity, showing a 2.7% drop. However, tighter supplies have helped the product rally and enter another upswing in what looks like a continuation of the volatility crude oil investments have been showing these past months.
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The tightened supplies have long since been the backbone of Brent crude oil’s strong standings, and since it will be quite a while before Libya bounces back from its prolonged absence in the markets, conditions for the company’s continuing upswing are perfect.
The futures of the oil commodity continue to show their volatile nature, as Europe rallies to find solutions to its long-standing dent crises. Several conferences have been scheduled in order to procure and discuss monetary stimulus for the continent’s floundering nations.
Economists and investors both remain largely skeptical over Europe’s ability to find permanent solutions to its persisting economic woes, and crude oil investments have been some of the first to suffer from the region’s weakened financial state. With the past few months proving to be extremely volatile for the commodity, it is still unclear whether viable forecasts can be made for the product’s future, as Europe attempts to bypass another recession.