Earlier this week the price dynamics of the Light Sweet Crude Oil futures surprised most market participants. Monday’s trading session opened at $87,05/b. Later the price made a sharp break above $90/b. The session closed at $91,62/b.
On Tuesday the growth continued. The price came close to the next major level of resistance ($95/b), thus creating the local high at $94,65/b. However, the day closed at $92,52/b.
On Wednesday the rally was exhausted as the price headed for the $90/b support but rebounded from it and closed the trading day at % 90,87/b.
Most analysts say the roller-coaster was provoked by the uncertainty in advance of the EU summit. It shows how sensitive oil prices are about the eurozone crisis.
According to the Department of Commodity Trading, , the recent rally of crude oil was caused by positive data from the eurozone (Germany supported the EFSF plan).
Of course, there were concerns that the EU had difficulties agreeing with European banks on the partial writedown of Greece’s debt. However, it was reported that Germany and France would hold talks with European banks while Asia would probably provide some financial support to Europe.
The price of the Light Sweet Crude Oil futures is currently stuck between $90,00/b and $95,00/b.
The EU keeps reassuring the markets. That is why the retesting of the level $95.00/b is highly probable. The current tendency is still bullish.
