Oil Rises on Spain, Greece, and US Fed Stimulus
Crude oil prices have been rising all day as Spain’s bond yields fall to acceptable levels after a successful auction. Greece’s pro-European Union pro-bailout New Democracy party won the elections over the weekend, which puts hope in a more stable Europe. The US Federal Reserve is meeting today to discuss further stimulus efforts in for the US economy.
Oil prices are up about 1.4%, along with gold, silver and other commodities anticipating the stimulus. Oil is the backbone of economic growth, so demand will increase as the economy strengthens. However as you pump more cash into the system, you also create inflation, and gold and silver are the best hedges against inflation as they hold their value.
Spain’s bond auction sold €3.04 billion – surpassing their targets set. This helped keep yields down and making repayments easier for Spain.
Oil July futures rose $0.41 or 0.5% to $83.68 per barrel.
Oil August futures rose $0.48 or 0.6% to $84.04 per barrel.
Brent oil August futures fell $0.01 to $96.04 per barrel.
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