The following excerpt comes from: foxbusiness.com | October 25, 2011 | MarketWatch|
Crude-oil futures settled at a 12-week high Tuesday, using the previous session’s steep gains as a springboard for further advances even in the face of broad market weakness.
Crude for December delivery added $1.90, or 2.1 percent, to end at $93.17 a barrel on the New York Mercantile Exchange. Prices rose as high as $94.65 a barrel ahead of the start of US floor trading, and the settlement was oil’s highest since Aug. 2.
Tuesday’s settlement above $91 a barrel served as a technical launching pad for Wednesday’s gains. Losses for Brent, Europe’s benchmark contract, also provided a technical background for the New York-based oil contract to rally.
Nymex oil “represented a bargain for the past three months or so,” but in the past two sessions traders have decided to recognize its value, according to Peter Beutel, president of trading advisory firm Cameron Hanover.
The difference in price between the two benchmarks has hit records in recent months, with Brent, historically cheaper, outpacing Nymex oil.
Read more: http://www.foxbusiness.com/industries/2011/10/25/oil-soars-past-3-settles-at-12-week-high/
