Related News
Oil prices climb on improving economic news
Source: Agencies |
July 14, 2010, Wednesday
|
Online Edition
Online Edition
OIL prices rose yesterday as the global recovery got a boost on two fronts after weeks of mixed economic news.
Benchmark crude for August delivery gained US$2.20 to settle at US$77.15 on the New York Mercantile Exchange, a day after the quarterly company earnings season got off to a better-than-expected start. In addition, a new global forecast called for a slight improvement in oil demand next year.
The prospect of an improving economy with stronger demand for oil and gas offset concerns about above-average supplies, which have kept crude prices bouncing between US$70 and US$80 a barrel since the end of May.
Alcoa Inc., the Pittsburgh aluminum manufacturing giant, and railroad operator CSX Corp. issued upbeat forecasts on Monday with their second-quarter earnings results. Alcoa said that global consumption of aluminum will grow this year by more than it forecast just three months ago.
Alcoa's varied customer base, from aerospace to beverage can manufacturers, can provide insight into economic trends while CSX ships a wide range of business and consumer products.
"After all the bad economic news over the last six weeks or so, good earnings reports suggest companies have money and they can spend some of that, and that makes people feel a little more ebullient about the market," said Michael Lynch, president of Strategic Energy & Economic Research.
The news boosted stock prices. The Dow Jones industrial average rose more than 170 points in late afternoon trading. The Nasdaq and the S&P 500 were higher as well. Earnings are expected to dictate trading over the next few weeks as hundreds of companies release results.
The International Energy Agency predicted 2011 global oil demand would increase by 1.3 million barrels a day, or 1.6 percent, to 87.8 million barrels a day, largely due to economic growth in emerging countries.
Demand in richer, more developed countries is expected to fall by 0.5 percent from this year, in part because of fuel-efficiency measures that will reduce the need for oil, IEA said.
The forecast was the first detailed look at 2011 from the Paris-based agency, the energy arm of the Organization for Economic Cooperation and Development.
Its 2010 outlook was little changed at 86.5 million barrels a day, a 2.1 percent increase from 2009.
In other Nymex trading, heating oil gained 5.61 cents to settle at US$2.0474 a gallon, gasoline rose 5.41 cents to settle at US$2.0821 a gallon and natural gas fell 3.4 cents to settle at US$4.354 per 1,000 cubic feet.
In London, Brent crude rose US$2.28 to settle at US$76.65 a barrel on the ICE Futures exchange.
Benchmark crude for August delivery gained US$2.20 to settle at US$77.15 on the New York Mercantile Exchange, a day after the quarterly company earnings season got off to a better-than-expected start. In addition, a new global forecast called for a slight improvement in oil demand next year.
The prospect of an improving economy with stronger demand for oil and gas offset concerns about above-average supplies, which have kept crude prices bouncing between US$70 and US$80 a barrel since the end of May.
Alcoa Inc., the Pittsburgh aluminum manufacturing giant, and railroad operator CSX Corp. issued upbeat forecasts on Monday with their second-quarter earnings results. Alcoa said that global consumption of aluminum will grow this year by more than it forecast just three months ago.
Alcoa's varied customer base, from aerospace to beverage can manufacturers, can provide insight into economic trends while CSX ships a wide range of business and consumer products.
"After all the bad economic news over the last six weeks or so, good earnings reports suggest companies have money and they can spend some of that, and that makes people feel a little more ebullient about the market," said Michael Lynch, president of Strategic Energy & Economic Research.
The news boosted stock prices. The Dow Jones industrial average rose more than 170 points in late afternoon trading. The Nasdaq and the S&P 500 were higher as well. Earnings are expected to dictate trading over the next few weeks as hundreds of companies release results.
The International Energy Agency predicted 2011 global oil demand would increase by 1.3 million barrels a day, or 1.6 percent, to 87.8 million barrels a day, largely due to economic growth in emerging countries.
Demand in richer, more developed countries is expected to fall by 0.5 percent from this year, in part because of fuel-efficiency measures that will reduce the need for oil, IEA said.
The forecast was the first detailed look at 2011 from the Paris-based agency, the energy arm of the Organization for Economic Cooperation and Development.
Its 2010 outlook was little changed at 86.5 million barrels a day, a 2.1 percent increase from 2009.
In other Nymex trading, heating oil gained 5.61 cents to settle at US$2.0474 a gallon, gasoline rose 5.41 cents to settle at US$2.0821 a gallon and natural gas fell 3.4 cents to settle at US$4.354 per 1,000 cubic feet.
In London, Brent crude rose US$2.28 to settle at US$76.65 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.
