NewsCrude rise above $70 on support from rising global equities PreviousForecastAnalysisCrude futures gained this morning due to rising risk sentiment as global stock indices rose and fears eased.
Crude on Friday and today managed to rise above $70 per barrel, supported by a surge in Chinese stocks after expectations that the second largest energy consumer in the world will delay tighten its monetary policies that will support growth levels in the country.
On a similar note, financial markets were supported after Germany last Friday passed its share of the bailout totaling 148 billion euros from the 440 billion euros to be endured by nations. This green light reinstated confidence in markets as the 16-nations stand behind the unity of the monetary union and the single currency.
Crude this month plunged around 20% on growing European debt woes, where it clearly negatively impacted stocks, commodities, and currencies especially the euro; yet as fears started to wane following the heavy and extending sell-off across markets crude managed to rise off its lows around $64.24 per barrel last week, as it currently stabilizes above $70 per barrel.
Crude opened last Friday around $69.400 recording its highest around $71.15 and lowest around $69.00 per barrel, and managed to close around $70.15 per barrel.
The S&P GSCI index settled at 473.74 dropping by 0.20 points; whereas the RJ/CRB Commodity index gained by 1.35 points to close around 251.42.
Regarding NYMEX trading as of 03:28 EST; motor gasoline rose to $197.490 per gallon by $1.370; heating is trading around $191.00 per gallon after surging by $1.330; whereas natural gas also rose by $0.010 to record $4.045 per 1000 cubic feet. In London, Brent gained by $0.510 to record $72.190 per barrel.
Crude opened today around $70.55 recording its highest around $70.90 and lowest around $69.60, while it currently trades around $70.80 per barrel.