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Barchart
Barchart
Rich Asplund

Crude Prices Jump on Increased China Stimulus and Strong U.S. Economic News

October WTI crude oil (CLV23) this morning is up +1.60 (+1.81%), and Oct RBOB gasoline (RBV23) is up +1.85 (+0.68%).

Crude oil and gasoline prices this morning are higher, with crude posting a 10-month high and gasoline posting a 2-week high.  Crude rallied today on speculation China's economic growth and energy demand will improve after the Chinese central bank cut the reserve requirement ratio for banks.  Also, better-than-expected U.S. economic news today signaled growth in the economy that is bullish for energy demand.  In addition, ever-tighter global crude supplies are underpinning oil prices.  On the bearish side, crude oil prices are being undercut by a rally in the dollar index (DXY00) to a 6-month high.

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