Sarkozy, Merkel announce stimulus plans, boost crude oil prices
Commodity trading in Asia and Europe continued their upswing today on the strength of the French and German leader’s weekend announcement that a new effective round of economic stimuli will be implemented next month in order to mend the region’s ailing financial states and prevent Greece from defaulting on its massive national debt.
The announcement caused yet another surge of crude oil futures and crude oil investments. West Texas Intermediate crude oil futures gained more than $2 and are currently firmly positioned above $84 per barrel. The figures come as a great relief to investors, who have had a tough year trying to cope with the high volatility and steady declines affecting the oil commodity futures for months at a time.
Though the announcements from Chancellor Merkel and President Sarkozy will remain largely under wraps until the end of the month, crude oil investments received the news eagerly and posted another round of increases. The high-profile oil commodity has now managed to pare down most of the losses it sustained over this torturous year, though it still shows more than 6% of losses for the twelve month stretch.
The surge of crude oil futures was also aided by better than expected data released by the U.S. Labour Department concerning unemployment rates in the nation. More than 103,000 new jobs were added in the U.S. in September alone, defying expectations of many analysts.
Both the jobless rates in the U.S. and the ongoing debt crisis in Europe have long since been the two key factors affecting crude oil investments this year, and despite the fact that the promises extended by the European leaders are still vague, the overall outlook for the commodity markets is positive, as they continue their upturn momentum.
WTI crude oil futures are currently trading at $84.02 per barrel.
Brent crude oil prices are fetching $106.49 per barrel in London.