Oil Rallies as Buoyed by Wall Street
BonTradeOil prices rebounded sharply in NY session although there were few pleasant surprises in the inventory report. We believe the rally was driven by short-covering and strength in Wall Street. DJIA and S&P 500 jumped +1.37% and +1.49% respectively due to stronger-than-expected US data. These upstaged sovereign woes in peripheral European economies and tensions on the Korean peninsula. The front-month contract for WTI crude oil rose to as high as 84.2 before settling at 83.86, up +3.21%. Fuel prices also soared with heating oil and gasoline gaining +3.37% and +3.72% respectively.
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Oil Rallies as Buoyed by Wall Street
