New debt resolution hope from Europe boosts crude oil investments
Crude oil futures rose to their highest standings in more than two weeks, as the leaders of France and Germany issued an announcement stating their new resolution tactics to gain some control over the mounting debt crisis of the region. The news instilled new hope in the ailing commodity sector and gave crude oil investments in particular a much-needed boost.
Crude oil futures increased almost 3% today, after the official announcement was put out. The latest European resolution plan is to recapitalize the region’s major banks and provide some sort of sustainable relief for Greece by next month. As soon as the announcement went out, the previously floundering euro surged against the U.S. dollar. Strong showings from the U.S. Labour Department, indicating that the nation is successfully curding its considerable jobless rates also positively affected crude oil investments.
According to data from the New York Mercantile Exchange, crude oil futures are up more than $2.43 and currently sit at $85.41 per barrel. The oil commodity futures have gained more than 13% in just four trading sessions, and though they have managed to pare down most of the year’s losses, are still down 6.5% overall.
Brent crude oil prices are up more than $3 at $108.95 per barrel.
The euro made major leaps upward, as the markets take in the news of a possible euro zone bailout. However, many investors and economists remain sceptical as to whether this latest in resolution measures will prove to be applicable or whether this is simply more procrastination from the region’s leaders.
Though commodity markets and crude oil investments seem to have shaken off their prolonged losing streak and are looking up for the near future, the long-term state of health of the sector is hard to project.