Crude oil futures are trading higher for the third straight trading day this Tuesday morning. This marks the commodity’s sixth day of gains out of seven. This is quite remarkable, as traders wrote off crude just a few weeks ago.
There was positive economic data at the end of last week, which lent crude oil a helping hand. The fact of the matter is that the U.S. is the number 1 economy and the leading consumer of oil. Therefore, a positive economy will in most cases boost oil prices.
The budget talks are dragging on, but the good news is that it looks like there will be an agreement sooner rather than later. This is as House Speaker John Boehner dropped his opposition to a number of issues relating to the budget. Therefore, President Obama will face less trouble passing the budget in the near future.
Crude oil has gained about $2 in the past 3 trading days. The energy is trading higher this Tuesday morning by 53 cents at $88.19.
Investors have a lot more confidence in crude oil today, as it is projected that inventories fell last week by 1 million barrels. If this does turn out to be the case, then crude prices may go much higher.
One of the most important reasons for the current bullishness in the black gold was the stock market rally on Wall Street yesterday. Investors are hoping for another such rally when the U.S. market opens. A weaker dollar may also help crude oil climb higher than its current price level.