Investing.com – Crude oil futures extended gains on Wednesday, rising to a fresh three-day high as reports that President Barack Obama planned to propose a USD300 billion stimulus package to spur job growth boosted sentiment, while strong equity gains also lent support.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD88.12 a barrel during U.S. morning trade, surging 2.45%.
It earlier rose as much as 2.56% to trade at USD88.27 a barrel, the highest price since September 2.
Media outlets reported earlier that President Obama planned to propose a USD300 billion stimulus package to bolster the U.S. economy and spur job growth when he addresses a joint session of Congress on Thursday.
Meanwhile, global equities rebounded from three straight days of losses on Wednesday, with European stock markets posting sharp gains, while U.S. equities were broadly higher after the open.
Weakness in the dollar also contributed to gains, as it makes dollar-priced commodities cheaper for holders of other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.36% to trade at 75.79.
Crude prices found further support after the U.S. National Hurricane Center said late Tuesday that a storm system in Mexico’s Bay of Campeche has a 40% chance of strengthening into a tropical cyclone within the next 48 hours.
Meanwhile, markets were 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 Thursday’s government report could show stockpiles fell by 2.2 million barrels last week, while gasoline stockpiles were projected to drop by 1.4 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery rose 0.81% to trade at USD114.06 a barrel.
The spread between the two contracts narrowed to USD25.94 a barrel, after closing at a record high of USD26.87 on Tuesday.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD88.12 a barrel during U.S. morning trade, surging 2.45%.
It earlier rose as much as 2.56% to trade at USD88.27 a barrel, the highest price since September 2.
Media outlets reported earlier that President Obama planned to propose a USD300 billion stimulus package to bolster the U.S. economy and spur job growth when he addresses a joint session of Congress on Thursday.
Meanwhile, global equities rebounded from three straight days of losses on Wednesday, with European stock markets posting sharp gains, while U.S. equities were broadly higher after the open.
Weakness in the dollar also contributed to gains, as it makes dollar-priced commodities cheaper for holders of other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.36% to trade at 75.79.
Crude prices found further support after the U.S. National Hurricane Center said late Tuesday that a storm system in Mexico’s Bay of Campeche has a 40% chance of strengthening into a tropical cyclone within the next 48 hours.
Meanwhile, markets were 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 Thursday’s government report could show stockpiles fell by 2.2 million barrels last week, while gasoline stockpiles were projected to drop by 1.4 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery rose 0.81% to trade at USD114.06 a barrel.
The spread between the two contracts narrowed to USD25.94 a barrel, after closing at a record high of USD26.87 on Tuesday.