|News||Crude climbed above $89 on optimism over recovery|
|Analysis||Crude traded above $89 per barrel today on hopes of strong demand on oil as Bernanke dampened the appeal of a renewed recession as the market shifts focus to the EU finance ministers meeting in Brussels. |
Crude today hovers around $89 per barrel recording its highest around $89.13 and lowest around $89.13, while it currently trading around $89.47 per barrel.
Recent optimistic signs from the US economy and Bernanke's positive comments and his disperse of possibilities for the economy to return to recession spurring a rally in stock markets today, driving oil up. Meanwhile, manufacturing, retail sales and housing data have all signaled improvement as more Americans which offset slightly the negativity of the unexpected unemployment spike in November as reported on Friday.
Last Friday, crude traded around $88 per barrel recording its highest around $89.45 and lowest around $87.13 per barrel, closing around $89.30 per barrel.
Moreover, strong manufacturing data from China, the largest energy consumer in the world, added onto the positive sentiment predominant in current markets; thereby, shifting attention away from the European debt crisis despite of the region’s present progress in containing this crisis from spreading; the ECB offered to extend emergency loans into the first quarter of next year, and thereby playing a role in the wave of optimism sweeping markets as well.
As for NYMEX as of 03:58 EST; motor gasoline climbed $0.17% recording $235.620 per gallon; heating is trading around $248.890 per gallon inclining $0.06; whereas natural gasoline rose $1.01 to record $4.393. In London, Brent futures gained $0.12 to record $91.530.