NewsPreviousForecastAnalysisCrude is trading above $74.00 after the improved sentiment in markets after China denied rumors of pulling out investments in Europe due to the debt crisis, alongside the US GDP that expanded for the fourth consecutive quarter; supporting expectations of rising demand in the largest energy consumer in the world.
Crude futures for July delivery today opened around $74.85 recording its highest around $75.37 and lowest around $74.30, while it currently is trading around $74.52 per barrel; although still down slightly this morning by 0.05%.
The comments and the data yesterday did have a positive impact on the market, thus reflecting on investors’ risk appetite at the time global stock indices have risen amidst Chinese denial of pulling back investments in Europe. In addition, US GDP witnessed an expansion by 3.0% in the first quarter this year and thereby reducing market tensions.
The Dow Jones Industrial Average Index ascended by 285 points or 2.85% to close around 10259 points; whereas Asian markets followed as Japanese Nikkei also rose around 1.28% by 123 points closing around 9763 points.
Easing fears in markets regarding the sovereign European debt crisis pushed crude to close yesterday around its highest level in two weeks; thus, helping lighten the sharp drop by 20.00% it has witnessed over a three month period, since prices managed to gain by 8.6% in the past three days. Meanwhile, crude futures closed around $74.55 rising $3.04 or 4.25% compared to the previous day.
The dollar yesterday dropped and thereby assisting commodities to the upside. The dollar index – which measures the dollar’s performance against a basket of foreign currencies – also fell from its opening level around 87.27 to close around 86.27 yesterday.
The RJ/CRB index rose by 14.92 points to close yesterday around 492.23 points; whereas the S&P GSCI index also ascended by 4.89 points to record 257.72 points.
In London, Brent slightly dropped by 0.03% closing around $74.64 per barrel.