The US Energy Information Administration reported that domestic crude inventories dropped for two straight weeks. This eased concerns that excess supply would undercut prices of light, sweet crude which was quoted at $74.64 a barrel on Thursday morning.
According to the Wall Street Journal, however, these factors weren’t “accompanied by a clear increase in demand,” which might hold back further rises until in the price.
Stock market futures and crude oil futures generally tend to move together, as oil tends to be a leading indicator, implicated in practically every step of most industrial and commercial processes. However, it is possible for oil to advance or retreat on factors unrelated to economic growth, notably supply shocks and political turmoil in oil-producing nations.
Stocks in Europe also climbed before trading began in New York, but the continuing sovereign debt crisis has a long way to go before any clear direction can be discerned in euro markets.
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