IV:Crude oil futures hit fresh 4-month high on U.S. recovery hopes
Investing.com - Crude oil futures rose to the highest level since mid-September on Tuesday, as appetite for growth-linked assets remained supported amid indications the U.S. economic recovery was gathering pace.
On the New York Mercantile Exchange, light sweet crude futures for delivery in March traded at USD96.73 a barrel during European morning trade, up 0.3% on the day.
New York-traded oil prices rose by as much as 0.45% earlier in the day to hit a session high of USD96.95 a barrel, the strongest level since September 18.
Oil prices continued to draw support from mounting optimism over the health of the global economy. Data on Monday showed that U.S. durable goods orders rose more-than-expected in December, jumping 4.6% compared to expectations for a 1.8% rise.
Market participants now looked ahead to Wednesday’s preliminary data on U.S. fourth quarter economic growth, as well as Friday’s U.S. nonfarm payrolls report, as markets attempt to gauge the strength of the U.S. economic recovery.
Investors will also be anticipating the outcome of the Federal Reserve’s two-day policy-setting meeting on Wednesday, for further hints on the future of its ultra-loose monetary policy.
Oil traders were also awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2.8 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery dipped 0.05% to trade at USD113.43 a barrel, with the spread between the Brent and crude contracts standing at USD16.70 a barrel.
Brent prices drew support from ongoing geopolitical tension in Libya and Algeria. Fears of an attack on oil assets in Libya have escalated in recent weeks, with the OPEC member boosting security at some oil facilities along the Tunisian, Algerian and Niger borders.
Libya is home to Africa’s largest oil reserves, while Algeria and Nigeria are both major suppliers of high quality sweet crude oil.
