Oil Gains 3 Percent on Europe Hopes, U.S. Sales Data

Reuters reported that the Oil prices gained 3 percent on stronger-than-expected U.S. retail sales and optimism about the prospect that European leaders can reach a deal to address the euro-zone debt crisis.

As quoted in the market news:

U.S. retail sales grew at their fastest pace in seven months in September, above expectations, and sales for August and July were revised higher as well.

“Equities were up on the retail numbers and good Google (GOOG.O) results and oil is very responsive to those numbers and we’re seeing a reallocation of funds, with some shorts possibly moving back into long positions,” said Richard Ilczyszyn senior market strategist at MF Global in Chicago. But despite the September buying splurge, consumer sentiment slipped in early October more than expected, sending the gauge to the lowest level in more than 30 years.

France and Germany reaffirmed their commitment to a recent deal between their two leaders to combat the euro zone crisis, lending support to oil prices earlier.

Click here to read the full Reuters report