|Analysis||Crude oil rose for the fifth consecutive session, hovering around three-month high, on hopes new leadership in debt-trapped Greece and Italy would be able to deal with the debt crisis. |
Oil for December delivery is currently trading around $96.50 a barrel after recording a high of $96.58 and a low of $95.22.
Now, the main focus is on Greece and Italy, before the second day meeting for European chiefs in Brussels.
Expectations mounted on Monday that Italina Prime Minister Silvio Berlusconi will step down amid mounting frictions from within his own party, yet Berlusconi such a claim.
On the other hand, Greek Prime Minister George Papandreou agreed to step down to make a national unity government to continue the progress with the EU and IMF.
It seems that administrating the debt crisis needs new leadership with more flexibility to guarantee shoring up debt-laden economies and preventing the contagion from spreading to other highly-indebted nations.
Yesterday, Euro zone finance chiefs discussed in their first day meeting the process of accelerating the boost of the European rescue fund and the difficult situation in Greece and Italy.
For Greece, they mentioned that more likely there will be a new coalition government which has to show its commitment to the EU/IMF program to receive the sixth tranche this month.
Italy, on the flip side, has to show to speed up the process of implementing the announced austerity measures, referring that “this is now the main task of Italy.
Moreover, news from Germany added some postivitiy to the sentiment as German trade balance report for the month of Sep. showed a widening surplus of 17.4 billion euros compared with the prior surplus of 11.8 billion euros. Exports climbed 0.9% while imports, on the other hand, slipped 0.8%.
In the FOREX market, the dollar’s movements remained within narrow ranges. The dollar index, which tracks the dollar movements versus a basket of major currencies, is currently moving around 76.90, near the day’s opening level, after touching a low of 76.86 while the day's high was recorded at 77.17.