Crude Oil Price Update – Prices Increase on Account of a Strengthening Economy

Oil prices rose for a second consecutive day on the strength of signs of the US economy improving. WTI crude future rose by 0.76 percent to register at USD $ 109.10 per barrel, while Brent future rose by 0.45 percent at USD $ 121.880 per barrel.

Reports released by the US Commerce Department showed housing stats higher than those predicted by economists. Also, a huge array of companies, from Intel Corp. to LG Chem Ltd. Reported earnings that were more than those previously forecasted. Furthermore, the Dollar Index slid for a second consecutive day. The dollar index measures the relative strength of the US dollar against six other major US trading partners’ currencies, and a decrease in the value of the dollar index increases the attractiveness of investments denominated in US dollars. This optimistic atmosphere over a strengthening economy has even offset concerns about European Sovereign Debt and fears about slow oil demand in the face of high crude prices.