WTI crude oil prices climbed back through triple digits in trading on Wednesday and open today’s session near $101 a barrel as stock markets around the world gain the most in two years and oil prices and other commodities followed suit.
Latest WTI Oil Price
US Light crude oil futures for January 2012 delivery was trading at $100.85 a barrel, 08.30 GMT this morning in electronic trading on the NYMEX.
The US oil contract closed off Wednesday’s trading session up 0.4 percent at $100.23 a barrel.
Stock Market Boost
Asian stock markets soared Thursday after major central banks acted in concert to lower borrowing costs, hoping to prevent a global credit crisis similar to the one that followed the collapse of Lehman Brothers in 2008.
Japan’s Nikkei 225 index jumped 2.4 percent to 8,638.72. South Korea’s Kospi surged 4.2 percent to 1,925.17 and Hong Kong’s Hang Seng vaulted 5.9 percent to 19,041.36. Benchmarks in Australia, India, Singapore and Taiwan all rose more than 2.5 percent. Mainland Chinese shares on benchmark indexes in Shanghai and Shenzhen rose more than 3 percent.
International Banking Plan
The US Federal Reserve said on Wednesday that it will team up with the ECB (European Central Bank), the Bank of England and the central banks of Canada, Japan and Switzerland to increase the flow of US dollars around the world.
The co-ordinated move should be a shot in the arm for Europe, where a festering credit crisis has slowed the eurozone economy and threatened a recession.
“They are putting more liquidity in the system and that means there’s a lot of easy money out there. That points to stronger commodity prices. It looks like the rally that took us to near $103.50 (for WTI oil futures) is taking shape again.” said Gene McGillian, a broker and analyst at Tradition Energy.
Both Brent and WTI oil prices moved higher following the news, however gains were not as strong as seen in stock markets around the world and the recent boost for crude oil prices may well be short lived.