Crude oil futures witnessed very good gains today, breaking above $91 per barrel for the WTI delivery and hitting its six week highs as an impressive run higher extended for the commodity. Crude stabilized above $89 per barrel after US oil inventories fell by 800,000 barrels and gasoline stocks dropped by 1.8 million barrels.
Slow-growth Euro zone nations risk deflation, and persistent debt concerns put the Euro zone's future in doubt, the International Monetary Fund warned today. Companies and households hesitant to spend because they hope prices will fall in the future can be pushed into bankruptcy as real estate and other asset prices fall.
Meanwhile, the single currency has been mostly up this week after the US Fed chairman Ben Bernanke stopped short of giving any idea about a possible round of further quantitative easing and mixed economic data mostly pushed the stock markets higher. Earlier in the week, the IMF had noted that the US Congress should raise its federal debt ceiling soon or risk disrupting the global and the US economic recoveries.
Euro tested highs of 1.2323 against the US dollar but slipped as Spanish borrowing costs rose above 7% and markets eyed the German parliament's vote on Spanish bailout. The single currency quotes at 1.2272 right now.European markets are trading with gains of between 0.30% -1% and are keeping the undertone mostly positive for the metals and energy counters. MCX Crude oil trades at Rs 5033, up Rs 65 or 1.31% on the day.
Powered by Commodity Insights