Europe’s fiscal union yield supports for oil investments
Crude oil futures traded near their two day peaks on the New York commodity index today, as traders geared for an upcoming meet between OPEC officials, which will see the group discuss production quotas and Libya’s full-fledged return. The new historic fiscal accord struck by the leaders of the European Union also bolstered oil investments, as the region prepares to rein in its spiralling debt.
Crude prices were subject to little change after the strong rally the commodity oil posted late during Friday’s session. OPEC’s key members discussed curtailing production rates in order to make room for the return of Libya’s light sweet product, and Iraq’s rapidly rising output. The euro zone concentrated its efforts on putting the newly composed fiscal austerity into action, a primary goal of which is to provide an additional 200 billion euros to the region’s bailout fund.
West Texas Intermediate crude futures for delivery in January rose 16 cents to $99.57 per barrel in electronic trading on the New York Mercantile Exchange. Oil investments in the American benchmark soared Friday, gaining more than $1 and surging as high as $99.41 per barrel. Prices are up 9% for the year overall, having climbed 15% in the year 2010.
Brent crude oil prices for January settlement held steady at $108.62 per barrel on the ICE Futures Exchange in London. The spread between the two contracts now sits at $9.05 per barrel.
Iran is expected to formally ask those members of OPEC that boosted their production rates throughout the year to scale back somewhat in order for Libyan oil to find a market seamlessly.
Crude oil futures and oil investments also saw tremendous support from China, where the import rates of oil and raw metals grew significantly over the week. China’s expansion efforts have been a main source of bolstering for crude oil and metal commodities over the past few years.