| News | Oil above $101.00 on US jobless claims and Europe's auctions |
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| Analysis | Crude oil advanced today, managing to rise as high as $102.04 since sentiment improved after the initial jobless claims fell more than expected in the U.S. last week, a successful bond auctions from France and Spain while Morgan Stanly and Bank of America posted better than expected earnings. Demand on the safe haven dollar fell today while the euro and the equities advanced, giving support to crude oil which is trading as of this writing around the $101.35 level, especially since Iran continues to consider closing Strait of Hormuz if it feels serious threats or a stricter embargo. Yet today’s gains were mainly supported by the positive sentiment fueled by the upbeat US economic data, where the initial jobless claims fell more than expected adding to evidence that the job market is strengthening. Inflation however remains flat and the housing starts unexpectedly weakened in Dec. Bank of America matched profit expectations and exceeded revenue estimates in Q4, while Morgan Stanley topped earnings expectations, sending shares higher, as the losses were lower than expected. Shares rose today also on hopes Greece might soon reach a deal with its private creditors avoiding a messy default. Spain and France drew strong demand today during the debt auctions which drove the yields down, easing some of the fears ignited since S&P’s mass downgrades. Therefore markets ignored Fitch’s announcement saying it puts Belgium, Spain, Italy, Cyprus, Ireland and Slovenia on negative watch. Hopes the IMF may boost lending resources continue to sustain risk appetite, therefore the dollar index is trading around 80.35, the euro is around 1.2690, while S&P500 gained 0.24% and DAX gained 0.31%. Brent is gaining trading around $111.44 ahead of the EIA crude oil inventories. |
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