Crude oil rose today after Europe finance ministers approved the July tranche for Greece, as the jitters have eased over the prospects for default. The focus this week will be on the jobs report which will be released on Friday from the United States which will be the evidence for the pace of slowdown. Today US markets will be absent from global trading as they’re celebrating the Independence Day, commonly known as the Fourth of July.
Light sweet crude oil started the week at $94.85 a barrel recording the intraday high at $95.46 a barrel and the low of $94.85 a barrel and it’s currently trading around $95.24 a barrel.
The weak dollar supported the rise of oil prices, after it fell against the euro when it traded near its highest in three weeks after Greece avoided default and on expectations that the ECB will raise rates from 1.25% to 1.50% when its meets on Thursday. The USDIX index opened today at 74.28 recording the highest at 74.32 and the lowest at 74.10 and is currently trading around 74.14.
Euro fell slightly after S&P said today that a proposed debt rollover plan for Greece may still put the country in "effective default."
European officials have agreed on giving Greece the 8.7 billion euro of last year’s 110 billion Euros aid package, after Greece has met their requirements and passed the austerity package, now the ministers still need to work on a second emergency package of similar size to ensure that Greece can stay secured until at least 2014.
Investros eye Friday’s jobs report, where markets expect the U.S economy might have added 85 thousand jobs during June from the prior disappointing added jobs of 54 thousand jobs in May, while projections are for unemployment rate to drop to 9.0% from 9.1% in June, pointing that the U.S economy will not sustain desired growth unless employment growth recovers.
