NewsCrude is trading above $82 supported by optimism overshadowing markets
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AnalysisCrude managed to stabilize above $82 per barrel in morning trading, supported by optimism overshadowing financial markets, where expectations are increasing of an agreement being reached regarding the health care program suggested by U.S. president Obama.

U.S. indices advanced yesterday; Standard & Poor's index ascended to its highest levels since October 2008, on news around the U.S. health care program Obama had previously introduced, where Democrats signaled a deal is almost reached, which could lead to final voting in the upcoming few weeks.

Crude contracts and stock indices tend to have a direct relationship, as the relation of stronger risk appetite and stronger economy reflected by its equity market tend to be reflected on commodities, thereby supporting oil prices. Stand & Poor's index inclined yesterday added 0.4% to 1150.24, the highest in over 15 months and is clearly evident on crude futures, which managed to stabilize above $82 per barrel.

The dollar’s decline also supported oil prices, where the euro against the dollar rose with increasing expectations regarding the Greek economy being able to resolving its debt crisis without needing a rescue plan from anyone, while the EU is so far supportive and behind the nation following the austerity deficit reduction measures taken.

Meanwhile, in the Asian continent there seems to be growing expectations regarding the BOJ attempting to expanding its scope of funding by 10 trillion Yen for loans granted for banks; therefore playing a major role in weakening the Japanese Yen and thus helping the dollar versus yen pair to rise and record levels near 90.55.

As for China, the largest energy consumer in Asia, ongoing expectations of an expansion in growth levels will support demand on oil, specifically since all expectations revolve around its being the leading economy to aid the world exit the recession. The IMF expects the Chinese economy to expand by 10% this year, with 1% expected for the euro zone and 2.7% for the U.S.

In addition, OPEC is expected to hold a meeting on the 17th of this month in Vienna, in order to discuss current policies. Expectations are increasing regarding a rise in oil shipments to keep up with the strong demand on oil in China, after they stabilized the quota in four consecutive meetings.

The S&P GSCI index ended yesterday at 526.54 after recording a drop by 1.12; whereas the RJ/CRB commodity index also recorded a decline of 1.23 to close at 273.39.

In NYMEX as of 03:15 EST; heating contracts rose to record $212.00 per gallon by $0.500; motor gasoline is trading around $227.570 per gallon after gaining by $0.370; whereas natural gasoline ascended by $0.022 to record $4.462 per 1000 cubic feet. In London, Brent inclined by $0.010 to record $80.290.

Crude opened today at $82.20, recording its highest at $82.40 and lowest at $82.10 per barrel, while currently trading around $82.30 per barrel.