The oil futures advanced on Friday amid signs of improving economic situation.
According to the trading results at NY commodity exchange, January light sweet crude oil futures edged up by 32 cents, or by 0.4%, to $88.02/barrel. Brent futures increased by 7 cents, or by 0.1%, to $91.67/barrel.
According to the Friday report by the Conference Board, leading economic index rose in November, which proved strengthening of the US economy. Leading index climbed 1,1% in November.
In the meantime, market analysts claim the Tax Bill approved by the Congress on Thursday has also improved the market mood. The bill extends Bush-era tax cuts for two more years for all population groups. Investors consider this to be favourable for economic recovery.
Crude oil has been trading within $87-90/barrel range since December 7 when oil prices surged up above the key level $90/barrel to ease afterwards. Given the lack of major fundamental signals the fact that the oil price cannot remain over $90 level will probably result in oil trading within a narrow price limit.
Oil price appreciated on Friday in spite of the improving US dollar that gained against the euro after Moody’s agency had lowered Ireland’s credit rating. Usually dollar growth pushes oil prices down as it becomes more expensive in other currencies. But recently this connection has weakened.
The situation concerning Commodity Futures Trading Commission’s new rules is still uncertain. It announced this Thursday that more time is required to estimate the rules supposed to restrict open trading in such commodities as oil, metals etc.
