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Oil Rallies as German Business Confidence Improves

November 24, 2011 at 22:21 by Vladimir Vyun

Crude oil rallied today after the German business confidence improved. Yesterday’s decline of the US inventories also helped crude.

The German Business Climate index, according to the Ifo Institute for Economic Research, increased to 106.6 in November from 106.4 in the previous month. Not a big increase, but it’s still better than the predicted drop to 105.3.

The US crude oil inventories decreased by 6.2 million barrels to 330.8 million last week. That’s compared to the forecast of a 0.3 million decrease and the decline by 1.1 million in the week before.

The leaders of Germany, France and Italy met today in Strasbourg, France, to discuss the ongoing debt crisis in the Eurozone. The results of the meeting were mixed. On one hand, the European chiefs discussed the measures to ensure a fiscal discipline among the members of the European Union, and such talks were a good sign. On the other hand, the idea of joint euro-bonds was postponed or even completely rejected, and that wasn’t particularly good news.

Brent crude rose to $107.20 to $107.76 per barrel today as of 22:14 GMT on ICE and earlier touched $108.08. Crude oil gained $1.01 to $97.18 per barrel on NYMEX.

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