Oil Rallies Over 4% and Trades along the Stock Markets

Sunday, October 11, 2009

Crude oil was little changed this morning after rallying for the first time in 3 days as the U.S. stock market advanced. Oil futures climbed 4% yesterday.

This is the word on the oil traders desks:

“People do look at the Dow and the S&P for signs that the economy is recovering and if the economy picks up then oil demand will pick up” Clarence Chu, a trader at Hudson Capital Energy

"The equities rally is supporting the market" Tony Machacek, Bache Commodities Ltd.

What is driving oil sentiment at the present time is the appetite for risky assets like stocks and the australian dollar. If sentiment improves in the stock market we cabn have a rebound in oil, but longer term demand will be the main driver of oil prices.

Oil Traders Blog is a website for active online oil futures traders. We provide research and relevant oil and energy related news for the oil trader or daytrader.

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