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ECB Plans Rescue for Eurozone, Oil Rallies on Resulting Hopes

August 6, 2012 at 22:21 by Vladimir Vyun

Crude oil rallied today as traders retained their optimism caused by the release of the very good US nonfarm payrolls on Friday. They also hoped that the European Central Bank would initiate its bond-buying plan soon. There was concern that Germany would oppose such move as it has done so many times before. Yet it seems that the German leaders changed their stance and supported the plan, boosting the market sentiment.

US stocks rallied today, giving a further boost to the optimistic mood of traders. The Standard & Poor’s 500 Index jumped 0.6 percent to the highest level since May 3. Most of the time, crude oil reacts positively to any good news as it did today.

September futures for delivery of crude oil rose $0.8 to $92.20 per barrel on NYMEX, reaching the highest price since July 19. Brent crude was up from $91.19 to $92.01 per barrel on ICE today, the highest close since July 20.

If you have any questions and comments on the commodities today, use the form below to reply.

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