October crude oil prices traded higher during the initial morning hours, climbing above yesterday's high in the process. Early support for the market appeared to come from an improvement in risk-taking sentiment and hopes that more central bank monetary stimulus could boost oil demand. There is a level of optimism in the market ahead of Fed Chairman Bernanke's speech in Jackson Hole that could offer clues on prospects for more US quantitative easing. Another supportive feature in the crude oil market comes in the wake of a UN report indicating that Iran continues to expand their uranium enrichment efforts, even in the face of tighter US and European sanctions. Some traders noted the potential for short covering activity during the session in front of the Labor Day Holiday weekend.
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