Crude Oil price outlook – Oil picks up 1.7 dollars, rises across Asia and Europe

I can finally breathe a sigh of relief as my out of money call options on oil (USO) start showing some sign of life as crude oil for July delivery picks up 1.7 dollars on rising equities, lower gasoline stocks and the expected EIA report later today. Oil rose across trading in Asia and Europe as rising stocks fueled optimism that the world will be able to look pass the recent crisis of confidence in the Euro-zone. We are also seeing sign that the new trading band for oil till more clarity comes into the market may very well range between 66 and 71 US dollars.

There were also talks of broader restrictions on naked short selling on the Euro from yesterday which may create some short term relief for the currency while speculators look for other alternative mechanism to take a position against the currency.