Oil futures (light, sweet crude) have inched up .35 cents to $93.88 a barrel for January delivery, according to NASDAQ. Brent crude also made gains of .29 cents to settle at $103.64 a barrel for February delivery, according to the Dow Jones.
The gains were largely attributed to investors being optimistic that the European debt crisis will be resolved. pointed to the news that 150 billion euros will be loaned to the International Monetary Fund by the euro-zone ministers in an effort to bolster the recovery process.
If the European debt crisis isn’t resolved, most investors fear that demand for oil will slow down considerably. Oil Futures are still trading just in the low to middle $90s though. The Christmas and New Year’s holidays will also temporarily slow markets. Demand for heating oil hasn’t been significantly impacted either, with no recent harsh winter weather to boost demand.
Two other international factors that oil futures investors are watching are Iran’s production levels and the political stability of North Korea since Kim Jong Il death. The impending assumption of power by his son (Kim Jong Eun) could also impact prices if North Korea experiences either internal conflict or decides to flex military muscle in the region.
Despite recent slower gains, oil futures continue to be favorable with investors.
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