Oil Erases Losses for the Week
Crude oil has finally managed to break a three day losing streak and was back above $88 per barrel. Today’s gain may be nothing more than an oversold bounce, but there are some bullish indicators as well. Traders cited talks…
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Crude oil has finally managed to break a three day losing streak and was back above $88 per barrel. Today’s gain may be nothing more than an oversold bounce, but there are some bullish indicators as well. Traders cited talks around the coming fiscal cliff, but an expiration may have helped oil too. The gain seen so far on Thursday was 1.6% to $87.86 but oil did get above $88 earlier today. Another issue around that gain is that this effectively takes out the losses in prior days.
Other factors that have been helping oil today are continued issues in the Middle East as well as ongoing pressure against Iran. A higher revised 2.7% GDP added some interest as well, although is just a revision and should have been anticipated.
Oil has been in a trading range of $85 to $89 for most of the last month. Meanwhile, Brent Sea Crude rose $1.25 to $110 76 per barrel earlier today.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
