WTI oil trading over $76 as stock markets move higher

21 September 2010 21 September 2010

BonTrade

WTI oil prices are trading over the $76 a barrel mark on Tuesday in Asia as European and US stock markets closed higher yesterday and await a key US Fed meeting later today.

US Light crude oil futures for October 2010 delivery was trading at $76.10, 06.00 GMT on the NYMEX after closing at $76.19 yesterday evening.

Stock Markets Move Higher

US and European stock markets jumped to four month highs yesterday, propelled by news that the US apparently exited recession in June 2009. Stock markets began their upward drive in late morning trade after the US National Bureau of Economic Research said the US economy had ended the most sustained downturn since World War II.

Later today the US Federal Reserve Open Market Committee will announce its latest rate decision and could provide some insight on its view of the economic recovery. Economists don’t see any policy change, but will be on the lookout for hints about possible future money supply measures which may affect the US dollar.

Oil traders maybe awaiting the outcome of the Federal Reserve meeting later today on monetary policy in the world’s largest economy.

Is the Oil Market Moving In Waves?

“An unusually bearish fundamental oil landscape will make it more difficult for oil to share in additional sprees of economic optimism. We view this market as moving in waves that have left oil futures little changed from price levels that existed some four months ago.” Ritterbusch and Associates said in a report.