Oil Investments Dip
Brent crude oil futures and oil investments lost considerable ground on the commodity index today, with the European benchmark commodity oil falling more than $1 below $111 per barrel, after investors started dissecting Europe’s finalized debt crisis resolution plan more closely. The strategy devised by the leaders of the addled euro zone provided a major boost for crude oil prices over the past two days.
Stock markets looked poised to wrap up their best week in more than two years, gaining traction from Europe’s efforts to gain control of its rapidly spiralling debt crisis. The region’s long-awaited resolution summit fed traders’ appetite for riskier assets, causing an increase in metal commodity futures and oil investments on the charts.
A strong euro also provided support for crude oil on the commodities market. Both Brent and West Texas Intermediate crude oil futures gained impressive ground on the strength of positive speculation surrounding Europe’s debt resolution efforts, with both commodity oils razing the massive losses they suffered throughout the year’s tumult.
As they stand now however, Brent crude oil futures for delivery in December are at $110.68 per barrel in London, barely above the resistant $110 mark, while WTI crude oil prices suffered a $1.39 loss and settled at $92.01 per barrel on the New York Mercantile Exchange. Prices for the commodity oil are still up 5$ for the week.
The euphoria over Europe finally reaching an agreement over their debt resolution strategies has now abated, and with a more sobered look at the sector, oil investments have dipped.
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The region’s heads of state have settled on a long term plan to recapitalize its banks and expand its rescue fund to one trillion euros. Europe’s leaders have also convinced private lenders to write off 50% of Greece’s sovereign debt, effectively pulling the struggling nation out of default territory.