Investors hope for crude oil to sustain upward trend

Crude oil futures showed considerable gain on the markets today, paring some of the massive losses the oil commodity has sustained this year and breathing new hope into investors, as the EIA reports indicated significant declines in crude stockpiles in the U.S. These sudden inventories drops helped propel the sector upwards despite negative reports coming in overseas from Europe.

Data from the EIA demonstrated that commercial crude oil stockpiles in the U.S. fell almost 5 million barrels in just one week, beating grim expectations of inventories rising 1.5 million barrels and further crippling crude oil investments for the week.

Crude oil futures for delivery in November are currently selling for $80.25 per barrel, setting the oil commodity on an upward trend after months of steady declines, and pushing the commodity futures back up and over the dreaded $80 per barrel mark.

Reports from the Federal Reserve infused investors with some much-needed hope by announcing a new round of aggressive economic stimuli for the nation ailing from soaring unemployment rates.  The labour sector in the U.S. also showed signs of unexpected growth, prompting crude oil investments to rise back up the charts.

The primary issue affecting crude oil prices remains the largely unresolved debt situation afflicting the European continent. The region’s finance ministries have conducted several meeting in vain, and now await decisions from the European Central Bank and the Bank of England of potential interest cuts that should give the markets a much-needed breather.

Representatives from the ECB have also announced their plans of purchasing long-term bonds en masse as a way of boosting the region’s struggling economy. It is unclear whether the actions taken by Europe will positively affect the market and crude oil investments in the long run. Economists and investors are alike have remained fairly sceptical, as the region conducted meeting after meeting while the economic state of Greece deteriorated to the point of an almost sure default.