Home
News
In Focus
Business
Metro
Nation
World
Sports
Feature
Opinion
View more »Opinion Columns
Wan LixinOpinion deputy editor of Shanghai Daily
Restaurants get off to a quick start thanks to game-changing policies
High service charges on event ticket refunds call for further regulation
Sunday
- Subscribe
Related News
Oil jumps on weak dollar, manufacturing strength
Source: Agencies |
August 4, 2009, Tuesday
|
Online Edition
Online Edition
OIL and natural gas prices rose sharply yesterday on the weakening dollar and on new signs of life from manufacturers that suggest the recession may be loosening its grip.
Benchmark crude for September delivery rose 3 percent, or US$2.13 to settle at US$71.58 a barrel on the New York Mercantile Exchange. It was the third straight day of substantial increases on the energy futures markets and the first time in a month that crude traded above US$70.
Natural gas, a major source of power generation, spiked by more than 9 percent on a day when both China and the United States reported stronger manufacturing activity.
Production from U.S. manufacturers jumped to its highest level in more than two years last month with new orders to restock businesses that had cleared inventories as the economy slumped.
The decline in manufacturing has been slowing since December and officials with the Institute for Supply Management, a trade group of purchasing executives, said yesterday that signs of growth in the sector could emerge as early as next month.
Manufacturing in China expanded at its fastest clip in a year, according to a survey by Hong Kong brokerage CLSA Asia-Pacific Markets.
Still, crude has been rising for the past several weeks on the downward trend for the U.S. dollar.
The dollar index reached its lowest point since September against the euro on yesterday.
Money floods into equities markets when the dollar falls because products like crude are priced in the U.S currency. Oil can be used as a hedge against inflation and it also becomes cheaper when the dollar falls.
Still, energy experts believe the price of oil and natural gas may be higher than they should be right now.
A barrel of crude reached as high as US$72.20 in midday trading, a price some believe will give way soon.
Oil prices seesawed last week before surging Thursday and Friday as investors bet that crude demand, which has been tepid this summer, will eventually pick up as the economy improves.
In other Nymex trading, gasoline for August delivery rose 5.67 cents to settle at US$2.0693 a gallon and heating oil gained 3.88 cents to settle at US$1.8713. Natural gas for August delivery jumped 37.8 cents to settle at US$4.031 per 1,000 cubic feet.
In London, Brent crude prices rose US$1.85 to settle at US$73.55 a barrel on the ICE Futures exchange.
Benchmark crude for September delivery rose 3 percent, or US$2.13 to settle at US$71.58 a barrel on the New York Mercantile Exchange. It was the third straight day of substantial increases on the energy futures markets and the first time in a month that crude traded above US$70.
Natural gas, a major source of power generation, spiked by more than 9 percent on a day when both China and the United States reported stronger manufacturing activity.
Production from U.S. manufacturers jumped to its highest level in more than two years last month with new orders to restock businesses that had cleared inventories as the economy slumped.
The decline in manufacturing has been slowing since December and officials with the Institute for Supply Management, a trade group of purchasing executives, said yesterday that signs of growth in the sector could emerge as early as next month.
Manufacturing in China expanded at its fastest clip in a year, according to a survey by Hong Kong brokerage CLSA Asia-Pacific Markets.
Still, crude has been rising for the past several weeks on the downward trend for the U.S. dollar.
The dollar index reached its lowest point since September against the euro on yesterday.
Money floods into equities markets when the dollar falls because products like crude are priced in the U.S currency. Oil can be used as a hedge against inflation and it also becomes cheaper when the dollar falls.
Still, energy experts believe the price of oil and natural gas may be higher than they should be right now.
A barrel of crude reached as high as US$72.20 in midday trading, a price some believe will give way soon.
Oil prices seesawed last week before surging Thursday and Friday as investors bet that crude demand, which has been tepid this summer, will eventually pick up as the economy improves.
In other Nymex trading, gasoline for August delivery rose 5.67 cents to settle at US$2.0693 a gallon and heating oil gained 3.88 cents to settle at US$1.8713. Natural gas for August delivery jumped 37.8 cents to settle at US$4.031 per 1,000 cubic feet.
In London, Brent crude prices rose US$1.85 to settle at US$73.55 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.
