November Nymex WTI prices are trading in positive territory Friday extending their overnight rally. November WTI futures ended Thursday’s session $1.87 higher, or 2.1%, at $91.85 a barrel, the biggest one-day gain since Aug 3. Oil prices have advanced in tandem with other risk assets after Spain unveiled a crisis budget based mostly on spending cuts that many saw as a step towards a bailout. Initial market reaction appear to have given the Spanish budget the benefit of a doubt for the time being. Oil prices are also receiving some support via continuing supply risk in the Middle East and geopolitical tensions. WTI prices have been in consolidation mode for much of the morning and have been tied to a fairly narrow trading range as market participants await the European markets reaction to the Spanish austerity measures and also the Spanish bank stress test results due later today. November WTI has edged higher from lows of $92.06 to trade an intra-day high of $92.47, with the market currently seen trading $92.28 a barrel, up 43 cents on the session.
EasyForexNews Research Team