Crude Oil prices rose on Monday after investors shrugged off disappointing housing data in the U.S. and applauded a G20 decision to voice no opposition to Japan's monetary easing measures.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded up 0.91% at USD89.07 a barrel on Monday, off from a session high of USD89.42 and up from an earlier session low of USD87.72.
Japan has rolled out massive monetary stimulus measures to steer the country away from deflationary decline and more towards growth, though G20 officials recently said they did not oppose such measures.
Monetary stimulus tools tend to weaken currencies, though industrialized nations said they won't oppose Japan's policies after concluding the country is not easing policy to give itself an unfair advantage in global trade markets.
The news sent oil climbing by quashing fears trade disputes could threaten global economic recovery and crimp demand for fuels and energy.
Investors largely shrugged off weaker-than-expected housing data out of the U.S.
The National Association of Realtors reported earlier that U.S. existing home sales fell 0.6% to 4.92 million units in March compared to February’s revised total of 4.95 million.
February existing home sales initially came in at 4.98 million units.
Analysts were expecting U.S. existing home sales to rise to 5.01 million units in March.
The data may prompt the Federal Reserve to keep its monetary stimulus programs in place a little longer, investors concluded, which would keep the greenback weaker and make oil a nicely priced investment in dollar-denominated exchanges, especially in the eyes of those holding other currencies.
Furthermore, many market participants continued to view oil as oversold.
Oil prices plunged last week after Chinese growth and industrial output data missed expectations.
A decision by the International Monetary Fund to trim its global growth forecast for this year also pushed oil down.
Elsewhere on the ICE Futures Exchange, Brent oil futures for June delivery were up 0.70% at USD100.34 a barrel, up USD11.27 from its U.S. counterpart. - Investing.com
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded up 0.91% at USD89.07 a barrel on Monday, off from a session high of USD89.42 and up from an earlier session low of USD87.72.
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| www.orangecommodities.com |
Japan has rolled out massive monetary stimulus measures to steer the country away from deflationary decline and more towards growth, though G20 officials recently said they did not oppose such measures.
Monetary stimulus tools tend to weaken currencies, though industrialized nations said they won't oppose Japan's policies after concluding the country is not easing policy to give itself an unfair advantage in global trade markets.
The news sent oil climbing by quashing fears trade disputes could threaten global economic recovery and crimp demand for fuels and energy.
Investors largely shrugged off weaker-than-expected housing data out of the U.S.
The National Association of Realtors reported earlier that U.S. existing home sales fell 0.6% to 4.92 million units in March compared to February’s revised total of 4.95 million.
February existing home sales initially came in at 4.98 million units.
Analysts were expecting U.S. existing home sales to rise to 5.01 million units in March.
The data may prompt the Federal Reserve to keep its monetary stimulus programs in place a little longer, investors concluded, which would keep the greenback weaker and make oil a nicely priced investment in dollar-denominated exchanges, especially in the eyes of those holding other currencies.
Furthermore, many market participants continued to view oil as oversold.
Oil prices plunged last week after Chinese growth and industrial output data missed expectations.
A decision by the International Monetary Fund to trim its global growth forecast for this year also pushed oil down.
Elsewhere on the ICE Futures Exchange, Brent oil futures for June delivery were up 0.70% at USD100.34 a barrel, up USD11.27 from its U.S. counterpart. - Investing.com
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