Crude oil exceeded 122 $ on Wednesday after two days of losses following the gains in financial markets as a result of the expectations that the European Central Bank “ECB” low-cost loans stimulate the appetite of high risk assets.
The Asian stocks rallied and Euro was just steady while markets expect the banks to borrow from “ECB” about 670 billion $ later on Wednesday.
The nearest maturity contract of Brent rose 69 cents to reach 122.24 $ per barrel at 5.15 GMT, as it declined yesterday of 2.62 $ to close at 121.55 $.
Also, the U.S. light crude price rose 54 cents to reach 107.09 $ per barrel, but the contract declined of 2.01$ to close at 106.55$ on Tuesday.
Rick Spooner – Head of Financial Analysis at CMC Markets – said “Markets are preparing today for the announcement of the European Central Bank.”
He continued, “In general there is a possibility for more risings, as the market suffers from a relative scarcity, and there is a spare capacity but not that much, so any disruption on supplies may take this surplus down.
Amwal Al Ghad