Crude oil prices recorded the largest increase in a week beginning its climb from the Asian session through to New York trading. From a low of $96.60, crude oil gained over $3 to hit highs of $100.07 by 11:20am CET.
In the past two weeks, commodities in general have been declining, reacting to European debt concerns. Investors worried whether Greece will be restructuring debt, which Moody’s ratings agency said would constitute a default.
Additionally, results of Spanish regional elections over the weekend led to suggest that the ruling Socialist party’s loss meant that the country lost confidence in the government sustaining austerity measures to bring the country out of debt.
What ensued from the news was the sharp decline in commodity prices on Monday as investors turned to a safer US Dollar, selling off riskier assets like commodities. However, today, commodities were given a lift after remarks by Goldman Sachs Group which said they are turning “more bullish” on raw materials. Goldman Sachs suggested buying oil, copper and zinc.