Related News
Bernanke comments help boost oil prices
Source: Agencies |
June 10, 2010, Thursday
|
Online Edition
Online Edition
OIL prices jumped sharply yesterday as Federal Reserve Chairman Ben Bernanke told Congress that the U.S. economic recovery remains on track.
Prices also got a boost after the government reported that stocks of crude fell more than expected last week. There are also concerns about what effect the six-month moratorium on deepwater drilling in the Gulf could have on domestic energy production.
Benchmark crude for July delivery rose US$2.39 to settle at US$74.38 a barrel on the New York Mercantile Exchange.
Bernanke did not rule out the country falling back into recession, but he predicted that the economy will continue to recover at a moderate pace. He also said the European debt crisis is likely to have only a modest impact on the U.S. recovery.
"Bernanke's comments created a certain exuberance across the market," said Mike Lynch, president of Strategic Energy & Economic Research.
Oil also got a boost from the Energy Information Administration report that showed crude supplies fell more than expected last week. The draw was particularly steep in the Gulf Coast region and larger than normal for this time of year, oil analyst and trader Stephen Schork said.
The drilling moratorium also weighed on investors worried that it will hurt domestic production down the road, he said.
The Organization of Petroleum Exporting Countries, which supplies 35 percent of the world's oil, left its monthly outlook for oil demand essentially unchanged on yesterday.
OPEC sees world demand at 85.37 million barrels per day, or 1 percent more than in 2009. OPEC said there are signs that demand is picking up, but the European debt crisis, an oversupply of crude and the potential cooling of China's economy could slow demand.
In other Nymex trading in July energy contracts, heating oil rose 4.43 cents to settle at US$2.0096 a gallon, and gasoline gained 5.06 cents to settle at US$2.0397 a gallon. Natural gas fell 13.1 cents to settle at US$4.677 per 1,000 cubic feet.
Brent crude rose US$1.97 to settle at US$74.27 a barrel on the ICE futures exchange.
Prices also got a boost after the government reported that stocks of crude fell more than expected last week. There are also concerns about what effect the six-month moratorium on deepwater drilling in the Gulf could have on domestic energy production.
Benchmark crude for July delivery rose US$2.39 to settle at US$74.38 a barrel on the New York Mercantile Exchange.
Bernanke did not rule out the country falling back into recession, but he predicted that the economy will continue to recover at a moderate pace. He also said the European debt crisis is likely to have only a modest impact on the U.S. recovery.
"Bernanke's comments created a certain exuberance across the market," said Mike Lynch, president of Strategic Energy & Economic Research.
Oil also got a boost from the Energy Information Administration report that showed crude supplies fell more than expected last week. The draw was particularly steep in the Gulf Coast region and larger than normal for this time of year, oil analyst and trader Stephen Schork said.
The drilling moratorium also weighed on investors worried that it will hurt domestic production down the road, he said.
The Organization of Petroleum Exporting Countries, which supplies 35 percent of the world's oil, left its monthly outlook for oil demand essentially unchanged on yesterday.
OPEC sees world demand at 85.37 million barrels per day, or 1 percent more than in 2009. OPEC said there are signs that demand is picking up, but the European debt crisis, an oversupply of crude and the potential cooling of China's economy could slow demand.
In other Nymex trading in July energy contracts, heating oil rose 4.43 cents to settle at US$2.0096 a gallon, and gasoline gained 5.06 cents to settle at US$2.0397 a gallon. Natural gas fell 13.1 cents to settle at US$4.677 per 1,000 cubic feet.
Brent crude rose US$1.97 to settle at US$74.27 a barrel on the ICE futures exchange.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
