Today, crude oil futures soared to $ 105 a barrel, after the European Central Bank said it was ready to act, that would protect the euro from collapse. It also will support further increases in oil prices provided the data on employment in the United States, which were much better than expected. Report of the U.S. government showed that the number of Americans who have filed for unemployment benefits fell to a four-year low, leading to a decrease in concern about weakening economic growth in the largest consumer of oil in the world. Oil prices rose amid signs of a slowdown in the U.S., because the weak data reinforces expectations the Fed to enter the third round of quantitative easing to stimulate the economy.
President Mario Draghi has promised to do everything necessary to protect the euro from collapse. He also said that the biggest problem in the market now is not economic weakness, and lack of confidence in solving the current debt crisis in the euro area.
The spread of the debt crisis in the euro area, along with other political and economic factors, led to swings in energy prices on the background of falling demand due to the tense situation in the Middle East.
Analysts expect volatility to continue, as the prospects for economic stimulus in the U.S. are putting pressure on the market.
Volatility also contributed to the reduction of corporate income among major oil companies that have already been affected by slowing demand in connection with the debt crisis in Europe.
Shell - the second-largest Western oil company in the world, said profit fell to about $ 6.0 billion from $ 8.0 billion last year. The fall was due to lower oil prices and rising operating costs.
Exxon Mobil Corp (XOM.N) - World's largest publicly traded oil company said a decline in quarterly profit, driven by lower oil and gas.
The cost of the September futures on U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX is now at $ 89.49 a barrel.
September futures price for North Sea Brent crude oil mixture increased to $ 105.21 a barrel on the ICE Futures Europe Exchange.
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