Crude oil rose today and yesterday after it seen a sharp decline last week, as Europe leaders eased concerns over the debt crisis by considering to expand the role of EFSF in order to contain the crisis from spreading, which made investors less worried about oil demand that retreated in the last period.
Oil for November delivery is currently trading around $82.24 a barrel after recording a high of $82.47 and a low of $80.90 after the opening price at $81.35.
This week, three European parliaments will have their vote on the expansions program that was suggested on July 21, but with a condition to have national parliaments’ approvals, today we will see the vote result from Slovenia and on Friday will see the major vote from the German parliament.
The European measures of expanding the role of the EFSF are considered positive signs that made investors optimistic about the European action to contain the crisis, as it eased concerns that dominate the world markets, which pushed oil prices to the upside after it seen a drop in world demand, hoping that European leaders could contain the crisis.
More eyes on Greece, which considered the disease that may affect other European countries, where it is showing a good progress in cutting their budget deficit, as after plenty of measures announced to reduce the deficit, the Greek prime minister declared of new measures that may help to reduce the deficit in order to collect the six tranche of last year bailout, and today we will see the result of the Greek parliament vote on them.
On the other hand, the U.S. dollar has seen a decline in yesterday’s trading which released the negative pressure on crude oil and let it rise, where it remain neutral in today’s session to open the session at 00 and reached the high of 00 and a low of 00 and it is currently trading around 000.
Last week, we have seen a panic sell-off that damaged the world markets, as investors worried about the global economy which is slowing down compared to previous pace of growth, and some economists are seeing the world economy is heading into a double dip recession, as the deepening debt crisis in Europe and a slowing pace of global recovery are taking the world economy into the abyss.
We may see choppy trading and volatility may remain evident in markets with poor fundamentals around the globe, and investors are awaiting for any action from the European leaders that would calm the markets.