Brent crude adds $1 to price
Brent crude oil has added more than $1 to its price today after positive data out of the US and reassurance from central banks regarding their relaxed monetary policies encouraged equities to advance across the globe. US consumer confidence increased more than was originally expected for May, which is encouraging not only for equities but for future oil demand — the primary driving force behind oil prices.
Consumer confidence was at its highest point since early 2008 according to the US consumer confidence index, yet another sign that the worlds largest economy is making steady progression towards a recovery from the global recession.
Brent crude oil was up more than 1.5% for the day, its largest one day increase since the start of the month. The black gold’s futures are up by $2 for July delivery, reaching $104.23 per barrel. US crude added 86¢ per barrel, ending the day at just over $95 per barrel — making the spread between US crude and Brent crude $9.22.
With the upcoming OPEC meeting on Friday and US oil supplies dwindling there is still plenty of opportunities for the situation to change, however OPEC is expected to announce a little changed production schedule.