Current Oil Prices Increase with Rising Stock Markets

The current oil price is strengthened by the increasing stock markets in recent days. However, traders said that the declines that pushed the prices of oil to its lowest level yesterday will most likely happen again.

On the NYMEX, the U.S. benchmark crude for delivery in April was 21 cents higher at $90.33 per barrel. Meanwhile, Brent for April also gained 63 cents to a crude price per barrel of $110.72 in London’s ICE Futures Exchange.

World stock markets rose as Chinese Premier Wen Jiabao gave a confirmation of China’s 7.5 percent yearly growth rate, and the increase in Europe’s retail sales. In the United States, the DJIA surged to its highest recorded level ever.

Over the last five weeks, the price of oil has shed around 7 percent. The temporary price fall in yesterday’s trading to below $90 per barrel is credited to the spending reductions, worth $85 billion, that was introduced in the United States, a move that can potentially hurt the leading economy of the world.

Lower prices of oil have helped reduce the price of gasoline. The current gasoline price average reflects an overnight drop to $3.74 per gallon, a rate that is cheaper by 3 cents compared to last year.

Several traders believe that the current trading signifies a break in the falling trend.

During this week, crude traders will be on the lookout for new information regarding the inventories of refined items and crude in the U.S., and the most recent jobs data from the government.

In other NYMEX trading, wholesale gasoline increased 2 cents to a price per gallon of $3.11. Heating oil gained 3 cents to a price of $2.95 per gallon. Natural gas moved 3 cents higher to $3.55 per thousand cubic feet.

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