Progress in China, Europe causes surge in crude oil futures
Crude oil futures rose on the commodity index today, as the sector gained new confidence that a coming debt crisis resolution in Europe and China’s expanding manufacturing industry will provide oil investments with longer term support. West Texas Intermediate crude oil prices, the recognized American benchmark surged back over the resistant $90 per barrel mark.
The attention of economists and investors is still fully concentrated on the ongoing debt crisis afflicting Europe. The region’s heads of state and finance ministers have held numerous summits in order to devise a cohesive long term resolution plan, and the date of October 26th has been set for Europe to finally unveil that plan in full detail. The supposedly approaching relief for Greece and Europe’s banks infused the global commodities market and crude oil investments with newfound confidence. However, traders should not lose focus until the summit actually takes place, as Europe has already displayed massive deliberation around the issue, postponing the official announcement date several times. The region’s two largest economies, Germany and France, have clashed over the details of the plan, and though things seem settled at the moment, some scepticism and preparedness in the matter would not go amiss.
U.S. crude oil futures for delivery in December currently sit at $91.27 per barrel on the New York Mercantile Exchange.
Brent crude oil prices in London are trading around $111 per barrel for December settlement. The European benchmark commodity oil profited from Saudi Arabia’s temporary absence from the sector. The oil-rich nation is in the midst of crowning a new prince.
Positive financial reports from China indicate that the prolific developing nation has successfully shaken off inflation troubles and has reported impressive industrial growth over the quarter. China’s massive expansion efforts have been providing crucial support for raw materials on the commodities market over the past few months, bolstering metal commodity futures and oil investments in particular.