What analysts are saying: "Today, it's pretty much a classic risk trade," said Brad Samples, a commodities analyst for Summit Energy. "Risk appetite is rising and people are returning to the market."
For weeks, crude prices have struggled to find a definitive direction as traders balanced optimistic economic and earnings news with developments in Europe's debt crisis. Bullish market news would usually bolster oil prices as traders speculate that higher demand will follow.
A worsening of Europe's debt situation could send oil prices lower. But for now, said Samples, crude prices are going the way of the stock market, up.
"The market is assuming and trading on the assumption that these countries will be treated like they are too big to fail," said Samples. "We think this is a dangerous assumption."
http://money.cnn.com/2010/04/29/markets/oil/?postversion=2010042911
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