Asian Equities Higher after Oil Rallies

Asian stocks were off to a positive start early Wednesday, inspired by a positive finish on Wall Street and underpinned by a three-day rally in crude oil prices.

Overnight, U.S. stocks closed higher for the second consecutive day, with all indices piling on more than 1 percent, encouraged by hopes of a deal on Greek debt and as traders picked up faith that oil had hit bottom after a seven-month rout.  Up for a third straight day on Tuesday, U.S. crude closed up $3.48 at $53.05 per barrel, marking its highest settlement this year. Benchmark Brent crude oil was up $3 at $58 a barrel.

“I think we’ve seen the lows for the year, even though the cutting down of capex and oil rigs may take 6 months to 2 years before supply tightens,” Daniel Morgan, global commodities analyst at UBS, told CNBC’s “The Rundown.” “Financially, oil prices have been sold off too aggressively so it’s poised for a comeback now.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.