Oil extends gains, US equity future trade in green

By FXStreet FXStreet (Mumbai) – Oil slippery floors of the equity trading bourses in the US are in for a relief rally today since both the oil benchmarks are trading well into the positive territory.

At the time of writing, the Brent futures were up 3% around USD 33.68/barrel. WTI futures were up 2.9% at USD 30.70/barrel. In US, the S&P 500 futures were up 10 points or 0.50%. DJIA futures were up 86 points or 0.55%.

Oil prices are up today even though the bearish fundamentals stay intact. Russian official was on the wires earlier today stating there are no plans for an emergency OPEC and non-OPEC meeting. The American Petroleum Institute (API) data released yesterday also showed a rise in the US inventory levels.

Hence, any bounce in oil and the resulting strength in the stocks should be treated with caution.
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Source:: FX Street