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Oil edges above US$84 amid light holiday trading
Source: Agencies |
November 26, 2010, Friday
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OIL prices edged above US$84 a barrel yesterday as a rally sparked by improving U.S. and German economic indicators endured amid light holiday trading.
By early afternoon in Europe, benchmark oil for January delivery was up 36 cents to US$84.22 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained US$2.61, or 3.2 percent, to settle at US$83.86 on Wednesday.
Markets in the U.S. are closed yesterday for the Thanksgiving holiday.
A surge in U.S. stock markets Wednesday, which was fueled by positive signs about the U.S. economy, buoyed oil traders' hopes that demand for fuel will improve.
The Dow Jones industrial average rose 1.4 percent after reports showed U.S. incomes rose last month and consumer spending climbed for a fifth month while fewer people claimed unemployment benefits last week.
An unforeseen rise in the Ifo German business confidence index, which in November hit its highest level since reunification, also helped boost oil prices.
Some analysts expect strong crude demand from developing economies and loose monetary policy in developed countries to push oil prices higher next year.
"Oil demand is set to hit a new record in 2011," Bank of America Merrill Lynch said in a report. "Increased capital flows to emerging markets, the wealth effect created by rising asset values, and lower refinancing costs will help oil hit US$100 in 2011."
In other Nymex trading in December contracts, heating oil rose 0.57 cent to US$2.3312 a gallon and gasoline gained 0.1 cent at US$2.2146 a gallon. Natural gas rose 3 cents to US$4.418 per 1,000 cubic feet.
In London, Brent crude added 40 cents to US$86.24 a barrel on the ICE Futures exchange.
By early afternoon in Europe, benchmark oil for January delivery was up 36 cents to US$84.22 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained US$2.61, or 3.2 percent, to settle at US$83.86 on Wednesday.
Markets in the U.S. are closed yesterday for the Thanksgiving holiday.
A surge in U.S. stock markets Wednesday, which was fueled by positive signs about the U.S. economy, buoyed oil traders' hopes that demand for fuel will improve.
The Dow Jones industrial average rose 1.4 percent after reports showed U.S. incomes rose last month and consumer spending climbed for a fifth month while fewer people claimed unemployment benefits last week.
An unforeseen rise in the Ifo German business confidence index, which in November hit its highest level since reunification, also helped boost oil prices.
Some analysts expect strong crude demand from developing economies and loose monetary policy in developed countries to push oil prices higher next year.
"Oil demand is set to hit a new record in 2011," Bank of America Merrill Lynch said in a report. "Increased capital flows to emerging markets, the wealth effect created by rising asset values, and lower refinancing costs will help oil hit US$100 in 2011."
In other Nymex trading in December contracts, heating oil rose 0.57 cent to US$2.3312 a gallon and gasoline gained 0.1 cent at US$2.2146 a gallon. Natural gas rose 3 cents to US$4.418 per 1,000 cubic feet.
In London, Brent crude added 40 cents to US$86.24 a barrel on the ICE Futures exchange.
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