May 10, 2010
Crude Oil Prices Snap Back on EU Aid Plan
June Crude Oil rallied nearly 4% overnight after the European Union provided clarity to the commodity markets with a plan to stabilize the Euro Zone economic region. The
EU’s plan provides new financial aid worth nearly a trillion Dollars. The new aid proposal which includes several key measures subject to parliamentary approval calls for the restructuring of debt,
low interest loans and the purchase of government and private bonds.
The positive move by the European Union is driving up demand for riskier assets this morning after a hard sell-off last week. In addition to the fresh news out of the
Euro Zone, traders are now getting a chance to refocus on the positive economic news out of the U.S. last week including the addition of 290,000 jobs. Traders are now a little more optimistic that
the aid package will help stop the slide in the Euro Zone and subsequently put the global economic recovery back on track.
Technically, the rally in …
