Improving U.S. economic data stimulates oil investments
Global crude oil prices gained ground on the commodities market today, paring down some of the extensive losses they suffered over the past two days amid signs of drastic improvements in the U.S. economy. Oil investments rallied as crude traders regained confidence in the commodity, trusting that the economic growth in the West would aptly counter the concerns still hovering over the euro zone.
West Texas Intermediate, the recognized American benchmark, ended the day at $99.37 per barrel in electronic trading on the New York Mercantile Exchange, showing an increase of $1.23 for its December delivery figures. The contract reached as high as $99.84 per barrel at some point in the session, hitting its highest peak since the end of July and coming closer still to the resistant $100 mark.
On the London-based ICE Futures Exchange, Brent crude oil futures for December settlement gained 50 cents to settle at $112.39 per barrel. Oil investments in the European benchmark did not falter as drastically as WTI did over the past few days, as they were propped up by the rising geo-political tensions in the Middle East.
Analysts have stated that thought the sector is still riddled with enough uncertainty to prevent another full-scale rally, crude oil futures and oil investments will likely continue to edge higher for the remainder of the week.
The commodity index faces tremendous obstacles from the euro zone however. Despite the fact that new governments are now pushing for strict reforms in Italy and Greece, Spain has emerged as the new primary threat to the economic stability of the region. The nation’s debt risk premium has soared over the past few months, placing it next line of European countries teetering on the brink of total collapse. Italy’s own bond yields are high enough to warrant continuous worry from investors.