Crude Prices Higher on Positive Eurozone Data
Crude oil prices moved up after France and Germany beat the quarter two growth expectations of the market. Many sectors were carried along by this rally, including European stocks.
The data calmed investors who were concerned for the condition of the two main economies in the eurozone. Strong growth numbers usually give support to the oil price per barrel since a stronger economy implies higher consumer spending and trade, thus more fuel demand.
In the ICE Futures Exchange of London, the oil price per barrel of Brent – at around 1034 GMT – gained 41 cents, or 0.4 percent, to $114.01. In the NYMEX, crude was also trading higher by 0.4 percent, or 37 cents, at $93.11 per barrel.
On top of the good macroeconomic figures, disruptions of oil supply worldwide including Yemen, Syria and South Sudan are also reinforcing price support in the midst of sanctions on Iranian crude.
Harry Tchilinguirian, commodity strategy head of London’s BNP Paribas, said that it is not necessarily what is new but what is current that allows the increase in oil prices. The crude market rallied as investors hoped for new stimulus measures to be implemented by central banks, added Tchilinguirian.
Further, current crude prices will keep on rising due to expectations of a third set of quantitative easing, which will continue for the present month, until the speech of the U.S. Fed Reserve Chair at the yearly symposium of the central bank to be held at Jackson Hole, Wyoming.
Market participants will, in the meantime, refer to the upcoming data from the American Petroleum Institute. According to Commerzbank, the crude oil supplies of the United States are anticipated to have further declined in the previous week.
The fuel oil contract for delivery in September was up by $2.20 or 0.3 percent at $959.75 a metric ton at 1036 GMT in London’s ICE Futures Exchange. In the NYMEX, gasoline for delivery in September was 79 points or 0.3% higher at $2.9986 a gallon.