Crude Oil Erases Losses on Speculations About ESM
Crude oil rose today, paring the earlier losses, on speculations that the European Stability Mechanism (the permanent European bailout fund) may get a banking license. That would give it an increased firepower. Signs that the economic situation in China is stabilizing provided further boost for the commodity. The uncertainty around Iran and its nuclear program is another bullish factor for crude.
Earlier, oil was weaker as US stockpiles unexpectedly grew. US inventories of crude increased by 2.7 million barrels to 380.1 million last week, while a decrease by 0.1 million was predicted by analysts. The increase of inventories sparked fears that demand for the commodity is waning.
September futures for delivery of crude oil gained $0.66 to $89.16 per barrel on NYMEX. Brent grade climbed from $103.02 to $104.66 per barrel as of 22:24 GMT on ICE today, following the earlier drop to $102.10.
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