Crude Oil - Crude Rises as U.S. stocks Rally

 @ibtimes
on January 20 2010 3:25 AM

Crude Oil prices were trading higher for the first session in six on Tuesday, helped by a surge in U.S. stocks that offset a rise in the U.S. Dollar on concerns about European growth prospects. Wall Street gains boosted Crude prices as investors bet a Massachusetts Senate race could derail President Obama's healthcare reform plan, which had been seen as a threat to profits in the key sector.

Last week, Oil prices fell nearly 6%, as forecasts of warmer weather dimmed the outlook for demand. A relatively high level of Oil supplies and decreased expectations that cold weather would require more heating fuel have also been weighing on Crude, analysts said. A stronger Dollar may also add some pressure to Oil prices, with the EUR falling to a 4-week low against the Dollar. Rise in the value of the Dollar often discourages investor interest in Dollar denominated commodities such as Crude Oil.

Share this article

More News from IBT MEDIA