ICE Brent crude oil futures trading 2.4% higher near $72

Brent crude oil on the ICE futures exchange traded $1.68, or 2.4%, higher at $71.68 a barrel on Monday as a rise in European equity markets gave weight to expectations of an improving economy.

There are two “reliable factors” that have boosted the oil market “equity markets are up and the dollar remains weak,” said Gene McGillian, of Tradition Energy in Stamford, Conn.

For the equity markets this week, third quarter company earnings will start to be reported, and there is some anticipation that positive numbers will result in a rise in global stock markets, just as they did after the second quarter earnings period, representing optimism that the global economy is improving. This could lend further support to the oil market that has been tracking equities.

Saudi Arabia, one of the world’s top oil exporters, will keep steady in November its curbs on the contracted volumes of crude it supplies to Asia and Europe, industry sources said. With holidays in the US, Japan and Canada on Monday, analysts said crude oil prices would be largely influenced by equities.

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