Oil prices tracked movements in global stock markets today.
Crude oil futures in New York and London were on the rise this morning as European equities advanced, recovering from yesterday's sell-off triggered by speculation that France may lose its top notch AAA credit rating.
Traders were nervous over the exposure of the French banking sector to European debt, particularly to Greek bonds. The speculation prompted agencies Moody's, Standard & Poor's and Fitch to reaffirm France's AAA rating to calm the markets.
In addition to the early relief rally in Europe, oil prices enjoyed support from a decline in the US dollar following the Federal Reserve's pledge to keep interest rates at near zero until at least mid-2013.
However, equity and commodity markets switched back to selling mode later in today's session under pressure from persisting worries over the strength of the US economic recovery and Europe's fiscal problems.
