On Thursday September 15, 2011, Brent crude leaped by about 3% and reached as high as $115 per barrel, this came as response the launch of a coordinated effort to boost the funding in European bank, by the Central Banks.
The news that most central banks around the world will cooperate in preventing the European debt and thus avoid the freeze of money in the markets was welcomed as a positive effort towards curbing another recession.
Expecting a rise in industrial demand, diesel and heating oil, tossed up by 3%. Lawrence Eagles, an analyst at JP Morgan said the heating oil and diesel inventories will witness a downward move in the coming months though.
Us Crude Oil for October delivery rose and reached to $89.40. While US heating oil leaped by 2.7% and RBOB Futures of Gasoline were at 2.1% increase; Gasoline Futures, which are the main distillate German contract gained a 3% high. US crude Brent premium reached $26, marking a $2 of widening. The sell off on the spread last week however caused its narrowing.
There is an increase in the number of people filing new claims for benefits of being jobless, indicating a weak economic movement thereby capping price rise. There was a sharp decline in the business activity especially in the mid Atlantic region of the US for yet another consecutive month, as reported by the Federal Reserve Bank of Philadelphia.
The weak data might have created a situation for an economic boost by the Federal Reserve. The meeting yet to be conducted by the Federal Reserve is expected to uncover new moves for growth.”Commodities have been in direct correlation to quantitative easing,” said the President of Springer Financial Advisors, Keith Springer, Sacramento, California.
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