After a strongly positive day of trading in global equity markets, crude oil broke a seven-day losing streak as some signals pointed towards recovery in the U.S. economy.
Retail sales were one of the primary drivers of positive sentiment on Wednesday, as the International Council of Shopping Centers said that sales hit their best rates since 2006.
In trading on the New York Mercantile Exchange, crude oil futures for August delivery gained 2.9 percent to settle at $74.07 per barrel. Overall, crude oil prices have decreased by 6.7 percent this, tracking the general decline in equities prices.
A report from the Department of Energy is due tomorrow, and analysts expect U.S. stockpiles of petroleum to decrease by 2 million barrels. Increasing demand and the temporary effects of the starting hurricane season are both cited as factors.
Many market observers believe that after the general downward trend of the year, and the sharp sell-offs of the past week, the declines may have been overdone and some indexes and commodities are due for a rebound. Chinese growth and demand will, as usual, play a key role in determining how far any recovery can go.