Crude climbs on hopeful data
By Edward McAllister |
August 24, 2009, Monday
|
Print Edition
Print Edition
OIL rose nearly US$1 toward US$74 a barrel to settle at a 10-month high last Friday as data in the United States promised economic recovery and a potential revival in energy demand.
US crude for October delivery settled up 98 cents at US$73.89 per barrel, the highest settle since October 20. London Brent crude for October settled up 86 cents at US$74.19.
Crude rose US$6.38 over the week, nearly 10 percent, from the US$67.51 settle on August 14.
"The primary source of support again tended to be spillover from the financial space that included a weakening dollar and associated strengthening in the stock indexes," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.
The US dollar was down against the euro, helping to support commodity prices, with investors showing some appetite for risk. Home sales data for last month showed recovery in the US housing market, while Federal Reserve Chairman Ben Bernanke said that the global economy appears to be recovering.
The US National Association of Realtors said sales of previously owned homes jumped 7.2 percent last month, the fastest sales pace in nearly two years.
US equities rose last Friday, sending the S&P 500 index to a 10-month intraday high on economic optimism.
Tighter regulation of the energy market may take the edge off high prices, Commerzbank said in note last Thursday.
"The significant rise in the oil price in the first half of the year is due in large part to a recovery in investment by financial investors," analyst Eugen Weinberg at Commerzbank wrote in their Commodities Spotlight Energy newsletter. "If their influence is reduced by the (Commodity Futures Trading Commission's) actions and sanity prevails, the oil price will fall."
US crude for October delivery settled up 98 cents at US$73.89 per barrel, the highest settle since October 20. London Brent crude for October settled up 86 cents at US$74.19.
Crude rose US$6.38 over the week, nearly 10 percent, from the US$67.51 settle on August 14.
"The primary source of support again tended to be spillover from the financial space that included a weakening dollar and associated strengthening in the stock indexes," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.
The US dollar was down against the euro, helping to support commodity prices, with investors showing some appetite for risk. Home sales data for last month showed recovery in the US housing market, while Federal Reserve Chairman Ben Bernanke said that the global economy appears to be recovering.
The US National Association of Realtors said sales of previously owned homes jumped 7.2 percent last month, the fastest sales pace in nearly two years.
US equities rose last Friday, sending the S&P 500 index to a 10-month intraday high on economic optimism.
Tighter regulation of the energy market may take the edge off high prices, Commerzbank said in note last Thursday.
"The significant rise in the oil price in the first half of the year is due in large part to a recovery in investment by financial investors," analyst Eugen Weinberg at Commerzbank wrote in their Commodities Spotlight Energy newsletter. "If their influence is reduced by the (Commodity Futures Trading Commission's) actions and sanity prevails, the oil price will fall."
- 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.
