September Nymex WTI prices are trading in positive territory Friday as the sharp risk rally observed during the previous session has
remained intact so far during Asian traded hours. WTI ended the previous session 42 cents higher at $89.39 a barrel, after climbing to intra-day highs of $90.47 a barrel after European Central Bank president Mario Draghi suggested that policymakers were prepared to intervene in bond markets as surging yields in Spain and Italy put pressure on the currency bloc. The comments from Draghi sent global risk assets into overdrive with sharp gains seen across European equity markets along with some sharp advances by the euro across FX markets. WTI ramped higher from $88.07 a barrel to $90.47 at one stage, before prices pared back to form a base above $89 a barrel. Prices moderately slipped to $89.13 in Asia this morning, but have now resumed their move higher, underpinned by some re-newed confidence for positive demand after the Draghi comments. WTI is currently trading near session highs at $89.67 a barrel, up 28 cents from the NY close.
EasyForexNews Research Team