Oil rose on Friday, following its more recent upward trend as global economic fears begin to ease.
The Thomson Reuters/University of Michigan consumer sentiment index was up to 64.2 in November, surpassing expectations of 61.5, said Bloomberg. Demand is expected to increase as consumers gain confidence.
A major cause for the confidence boost seems to be the action moving forward in Italy and Greece to rectify the debt problems.
Italy is looking to swear in a new leader, possibly EU Competition Commissioner Mario Monti, says Bloomberg, and the nation has decided on a debt-reduction plan.
Meanwhile, Greece approved what the article calls a unity government, swearing in Lucas Papademos as prime minister.
John Kilduff of Again Capital LLC told the Financial Post:
“Oil prices continue to build on recent gains from the growing conclusion that the euro zone countries will get past the current debt crisis period.”
The Financial Post reports that the euro gained in relation to the dollar.
The dollar’s weakening against the euro has inclined investors to turn toward oil.
As Bloomberg reports, crude for December delivery rose to $98.48 per barrel on the New York Mercantile Exchange on Friday. It is up a total of 4.5% this week.
Brent crude on the London ICE Futures rose to $113.94.
According to Bloomberg, U.S. stocks have been up lately as well. The S&P 500 rose 2.1% on Friday, and the Dow Jones was up 2.3%.
Oil and equities tend to follow similar trends, and this was no exception.
Oil inventories are decreasing lately, an indication of increasing demand. Consumption of petroleum, said Bloomberg, was up 7.5% last week.
That’s all for now,