Oil investments on an upswing on strength of European optimism
Crude oil futures held below $94 per barrel on the Asian commodity index today, after surging strongly during the previous session. The commodity oil increased dramatically over the week, as Europe finally devised and launched a long term resolution plan for its ongoing debt crisis, leading investors to believe that the global economy and demand are on the mend. Optimistic economic reports from the U.S. also fuelled the rise of oil investments on the commodities market.
West Texas Intermediate crude oil prices for delivery in December fell 34 cents to settle at $93.62 per barrel in electronic trading on the New York Mercantile Exchange. The American benchmark commodity futures gained almost $4 yesterday, razing the rest of their year’s losses. Prices are currently up 2.5% for the twelve month stretch.
Brent crude oil futures lost 40 cents and now sit at $111.68 per barrel in London. The European benchmark commodity oil is back up over the resistant $110 threshold. Points of resistance traditionally signify clustered demand for the oil investments.
Crude oil futures have now gained more than 24% since early October, rising from the meagre $75 per barrel standing they occupied then. The commodity oil surged on expectations that Europe’s leaders will be able to keep Greece from defaulting, thereby setting off a chain reaction in the region, leading to another bout of recession. The leaders of the euro zone have convinced private bondholders to write off 50% of Greece’s current outstanding sovereign debt. The region has also launched plans to recapitalize its banks and expand its rescue fund to one trillion euros.
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The euro rose on the currency index on the strength of the news from Europe, signifying a further increase in oil investments. Greenback-priced crude oil tends to flourish when the U.S. dollar loses ground.