Crude up on equities performance

28/05/2009

Crude oil futures trading on the New York Mercantile Exchange rose again yesterday morning (May 27th) as investors drew confidence from stock market rallies.

By 05:21 Eastern Time, the July delivery heating oil contract had risen to $62.45 (£39) a barrel, up 68 cents on yesterday's settle.

Heating oil futures also made gains as traders took stock of the rally in equities markets around the globe.

However, the Wall Street Journal reports that Peter Beutel, president at trading advisory firm Cameron Hanover, warned that the confidence in global recovery may yet prove to be unfounded.

"We are as glad to see this blind optimism in equities as we are confused to see it so quickly converted to oil use," he said.

Crude and heating oil contracts rose yesterday on the back of new US consumer confidence data, which investors viewed as a positive sign that demand for oil may be about to pick up.