Oil exchange traded funds are inching upward as crude futures climb back toward triple-digit territory.
The price of crude oil has been rising on the appreciating euro, holds to further strategic stockpile releases and dovish talk from the Federal Reserve.
Oil prices topped $100 a barrel briefly on Thursday as European Union leaders agreed on a second bailout for Greece, reports Matthew Robinson for Reuters. The move helped the euro appreciate against the U.S. dollar. Oil usually rises against a weaker dollar since crude oil will be cheaper to foreign investors. [Stock ETFs Rally, Crude Touches $100 as Markets Eye EU Deal.]
Tom Knight, trader at Truman Arnold, commented on how the stock markets are rallying on hopes of a potential solution to the debt problems in Europe, which is “also a factor in support of oil’s rise,” according to the Reuters report.
Additionally, positive data on increased factory activity in the U.S. Mid-Atlantic region and news that the IEA will hold out on releasing more oil stockpiles have helped support oil prices.
“The IEA’s statement that it will not release more emergency oil at this time is, in my view, bullish for the market, although there has been talk that they would do just that,” stated Phil Flynn, analyst for PFGBest Research.