On Thursday, crude oil futures quotations gained further and hit a new 3-week high, obtaining support from the stock market positive dynamics, the US dollar decline and the recent oil inventories shrink in the USA.
Following the trading results, February light sweet crude oil futures rose by 1.38 USD or by 1.8% to 78.05 USD per barrel. Brent crude oil futures ticked up by 86 cents or by 1.1% to 76.31 USD per barrel.
As far as not many important news were released on Thursday, which could specify trading direction, crude oil futures were oriented by shares strengthening at the stock markets. Dow Jones Industrial Average index closed at the highest level of this year (10520). The shares got a hit to growth from the reduction of the US unemployment rate in the past week, which heightened investors trust in the US economy recovery.
The US dollar slide against the euro as Europe debt fears weakened amid a new reduction plan on Greece budget deficit that contributed to crude oil prices growth. Crude oil goes up in price when the US dollar falls as it makes raw materials more expensive for the market participants, holding other currencies.
Slash in the US crude oil inventories sent prices higher to a 3-week high. Besides, the inventories slump still sustains some disposition to the oil prices growth.
The oil prices got support at the end of the day, when certain traders started to level positions ahead tertian Christmas holidays. The trading volume was low that exaggerated price change.
Meanwhile, Agence France-Presse reported about the resumption of crude oil export from the North Iraq after temporary suspension because of sabotage at the oil pipeline that takes crude oil to the Turkish port of Ceyhan. This pipeline usually pumps 420000-450000 barrels of crude oil per day.
Best regards,
analyst: Vladimir Donin.
