Crude oil soared yesterday breaching above the physiological level of $90.00 backed by hopes from Europe that EU leaders emerged a comprehensive plan to solve the debt crisis and better than expected manufacturing data from China that pushed crude to the upside significantly.
Crude oil for December delivery continued yesterday’s rally after it opened the session at $91.75 and reached so far a high of $92.58 and recorded a low of $91.08, where it is currently trading positively around $92.50.
Investors are so optimistic over the European efforts that it would be able to contain the crisis and prevent it from spreading, and the plan that they would announce on Wednesday would be strong enough to extend the firepower of EFSF in an appropriate way along with the progress of recapitalization of European banks.
The agreement between Merkel and Sarkozy helped investors to be optimistic again, as Sarkozy stated that they are finding a way together to extend the firepower of the EFSF, which hinted that leaders would come up with a comprehensive plan for the continent.
