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 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
Filed under: 24/7 Wall St. Wire, Commodities & Metals, Oil & Gas