Risk Taking Leads to Gains for Oil

Crude oil started off the week on a bullish note as risk taking in the marketplace led to gains for commodities and higher-yielding currencies. In addition, inconclusive talks between Iran and the West last week led to some supply side fears among investors which further boosted prices. The price of oil increased by over $1 a barrel, reaching as high as $91.95 before staging a downward correction and stabilizing at $91.45. Today, whether or not oil will be able to extend its recent gains will largely be determined by any news out of the euro-zone. Any indications that more pro-austerity political parties will win in Greek elections next month could ease fears that Greece will have to leave the euro-zone, in which case crude oil may extend its bullish run.

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