Recovering oil prices lift European shares

The consecutive four day gain in oil prices, has helped the raise of European shares on Thursday, while the 0.5% fall of the dollar against the euro during the week took the shine off a strong 2015 for the dollar.

With a fall in supplies, and removing of a 40 year old ban on most of the U.S. crude exports, there was a rise in West Texas Intermediate(WTI) CRUDE FUTURES CLc1 32 cents higher selling at $37.82 per barrel, they were prepared for their biggest weekly gain since early October.

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Brent futures traded internationally LCOc1 gained 30 cents to $37.66, from a fall of 35% this year

The fall of oil prices have affected energy companies and dropped inflation expectations, reducing government borrowing costs and strengthening bets on further European Central Bank monetary policy easing.

“The London market is benefiting from the latest rebound in crude prices” said Spreadex analst Connor Campbell.

Euopean bond markets were closed. The euro gained by 0.3% at $1.0943, while the dollar .DXY fell by 0.3% against an index of its rival currencies, with an almost 9% rise this year.

The dollar lost 0.8% against the euro this week, with an 11% gain since January in the run up to the first U.S Fed interest increase since 2006.

 

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