US crude futures rise $1.27/bbl on stimulus hopes

16 August 2012 21:35  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for September delivery rose for the third consecutive session, settling at $95.60/bbl on Thursday, up $1.27 versus the previous close, on the back of investors’ enthusiasm that central banks in various regions will inject more stimulus into their economies in order to promote growth.

The stock market rallied and the dollar eased against a basket of currencies following the release of data showing a decline in housing starts and a small rise in unemployment claims, which should encourage action from the US Federal Reserve.

Upside momentum caused WTI to penetrate technical resistance barriers, triggering buy stops.

After establishing an intra-day high of $95.67/bbl, up $1.34 during the normal floor session, the rally attracted a round of profit taking ahead of the closing bell but showing signs of working higher. In after-market electronic trading, September crude hit $95.75/bbl.

ICE Brent for September delivery went off the board at the end of the session, topping out at $117.03/bbl before settling at $116.90, up 65 cents.  The October contract settled at $115.27.

By: Ignacio Sotolongo
+1 713 525 2653

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