Crude oil continued to advance this morning following news that European leaders had agreed on measures to end the eurozone sovereign debt crisis, which threatened to slow economic growth and curb the demand for commodities.
 
Investors are hopeful that European oil demand will now pick up. Economic data due for release later today is anticipating that the US economy grew at an annual rate of 2.5% in the last quarter. Moreover, figures released yesterday from the US Department of Energy showed that gasoline supply, diesel, and heating oil fell last week. Gasoline stockpiles dropped 1.35 million barrels last week, while distillate-fuel supplies fell 4.28 million barrels. Meanwhile refinery utilisation rose 1.7% after falling in the previous four weeks.
 
The data further promoted a rise in the price of oil as hopes that demand for the commodity wil increase. Adding to the upward trend in the price was the threat of Hurricane Rina, which is forecast to approach Mexico’s Yucatan Peninsula. The hurricane could potentially shut down 6.27 million barrels a day pumped by Petroleos Mexicanos, Latin America’s largest oil producer, which would drastically reduce supply at a time when demand appears to be increasing. Crude oil futures for December delivery have risen over 16% over the past month, and this morning it is no different. Light sweet crude oil was up over 2.7% to $92.69 a barrel while Brent crude oil was 1.82% higher at $111.15 a barrel.