WTI oil futures open trading on Monday higher as stock markets in Asia are boosted by a rally in global stock markets late last week.
US Light crude oil futures for November 2010 delivery was trading at $76.57 a barrel, 08.00 GMT on the NYMEX after closing higher in trading last Friday.
Investors will be closely watching the latest indicators on US consumer confidence tomorrow and second quarter US GDP due out on Thursday which could make or break recent stock market rallies around the developed world.
Low Trading Volumes – Higher Stock Markets?
However September trading volumes on the US stock market is already 8% below August’s trading volume, which in turn was the lowest in 3 years.
Meanwhile, orders for durable goods in the US dropped 1.3% in August, new orders rose 2%, the US Commerce Department reported.
“Orders for capital goods reversed trend in August, and companies ordering capital equipment shows their faith in the economic recovery. But the rally for WTI oil above $75 a barrel may be shortlived as fundamentally, the market remains weak.” according to Victor Shum at Purvin & Gertz in Singapore.