Investing.com – Crude oil futures added to strong gains on Tuesday, trading above USD83 a barrel amid fresh hopes that European Union leaders will soon take decisive steps to tackle the financial crisis in the single currency bloc.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at USD82.68 a barrel during European late afternoon trade, surging 3.04%.
It earlier rose by as much as 3.25% to trade at USD83.07 a barrel, the highest price since September 22.
Market sentiment was boosted after German Chancellor Angela Merkel stressed the importance of approving changes to the European Financial Stability Facility, the region’s bailout fund.
Merkel’s comments added to speculation that euro zone leaders are examining ways to enlarge the capacity of the EFSF ahead of votes in several European states later in the week on increasing the role of the rescue fund.
The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.
The euro strengthened against the U.S. dollar on the back of the news, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.52% to trade at 78.36.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Markets were also awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2.2 million barrels last week, while gasoline supplies are forecast to rise by 1.0 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery rose 1.33% to trade at USD105.33 a barrel, up USD22.65 a barrel on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at USD82.68 a barrel during European late afternoon trade, surging 3.04%.
It earlier rose by as much as 3.25% to trade at USD83.07 a barrel, the highest price since September 22.
Market sentiment was boosted after German Chancellor Angela Merkel stressed the importance of approving changes to the European Financial Stability Facility, the region’s bailout fund.
Merkel’s comments added to speculation that euro zone leaders are examining ways to enlarge the capacity of the EFSF ahead of votes in several European states later in the week on increasing the role of the rescue fund.
The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.
The euro strengthened against the U.S. dollar on the back of the news, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.52% to trade at 78.36.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Markets were also awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2.2 million barrels last week, while gasoline supplies are forecast to rise by 1.0 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery rose 1.33% to trade at USD105.33 a barrel, up USD22.65 a barrel on its U.S. counterpart.