“Investors are finally getting over the Greece issue,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “The euro is rising despite the country’s credit rating being downgraded because there’s a realization that Greece is only a small part of the overall European economy, and the continent as a whole will grow.”
Futures also rose along with equities as growth in New York manufacturing added to signals the global economy is weathering Europe’s debt crisis. The Standard & Poor’s 500 Index increased 17.26, or 1.6 percent, to 1,106.89.
“Each point on the S&P is reason for the bulls to send the oil market seven-to-10 cents higher,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. “The bulls are looking at stocks, the euro, the dollar, anything to send the market higher.”
Manufacturing in the New York region expanded in June. The Federal Reserve Bank of New York’s general economic index rose to 19.6, an 11th consecutive month of growth and in line with the median forecast of economists surveyed by Bloomberg News.
“The market is starting to get interesting again,” Larry said. “There’s renewed confidence that the global economy is expanding and we should see oil shoot back to $85.”