Oil sees optimism in global economy, waits on inventory confirmation

Quote of the Day.

Treasure your relationships, not your possessions.

Anthony J. D'Angelo

A sprinkle of optimism coming from Europe coupled with some early corporate earnings reports that came in better than expected was enough to send the equity markets into a decent one day rally that spread to the oil sector and other key commodity sectors. Comments out of Germany suggesting that they may ease their objection or resistance to a Spanish bailout sent a message to the market that the EU Ministers meeting on Thursday and Friday could now make progress in taking another step in solving the EU sovereign debt issues. In addition the better than expected earnings from Goldman and several other early reporters helped push most all risk asset markets higher as market participants regained a bit of confidence that the economy may be starting to stabilize.

On the global equity front, for the first time in a long time all ten bourses in the EMI Global Equity Index (shown below) increased in value. The Index is higher by 1.3% for the week with three trading sessions yet to go. The year-to-date gain has widened to 8% and is now at the highest level since the third week  in September. There are now five bourses that are showing double digit gains for the year with Germany remaining the highest gaining bourse in the Index for 2012. The global equity markets have been a positive price driver for the oil complex as well as the broader commodity complex for the entire week so far.

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