Related News
Oil prices up on Mideast strife, Europe debt plan
Source: Agencies |
November 23, 2011, Wednesday
|
Online Edition
Online Edition
OIL prices rose yesterday on concerns that Middle East strife could disrupt supplies and on hopes that Europe's debt crisis wouldn't lead to worldwide financial gridlock.
West Texas Intermediate crude, the benchmark used to price oil in much of the US, rose US$1.09 to end at US$98.01 a barrel in New York. Brent crude, which is used to price oil produced in many foreign countries, rose US$1.99 to finish at US$108.65 a barrel in London.
Oil prices rose on worries that new international sanctions on Iran would reduce the flow of oil from the world's fourth biggest oil producer. Also large, violent protests in Egypt stirred fears that upheaval in the region could spread and disrupt supplies. Egypt is not a major oil producer, but it does control important energy supply lines and wields considerable influence in the region.
The worst fears about Europe's debt crisis - that it could lead to a lending crisis and financial gridlock around the world - were allayed somewhat yesterday by the announcement of an International Monetary Fund plan designed to help prevent the debt crisis in Europe from spreading. The IMF plan would provide quick cash on flexible terms to countries facing sudden financial stress.
Concerns remain that Europe's debt crisis is pushing the region toward recession, which would slow industrial activity in Europe and in countries around the world that export to Europe.
In the US, the Commerce Department said the economy grew more slowly over the summer than the government had earlier estimated. That picture of a sluggish economy helped drive the stock market mostly lower yesterday.
When the global economy slows, demand for crude oil and refined products like diesel and gasoline falls because fewer goods are produced and shipped, and people travel less. Even with yesterday's gain, oil is down 5 percent since last Wednesday, when it spiked to US$102.59 per barrel.
"The market is concerned on the one hand about the rate of economic growth," said Andrew Lipow, an independent oil analyst based in Houston. "On the other hand, issues in the Middle East are continuing."
There was some encouraging economic news in the US, however, that helped push oil higher yesterday. The government reported that inventories of goods fell over the summer. That raised hopes that the economy could grow faster than expected in the current quarter, if factories crank up to restock shelves.
And a mild weather forecast for much of the US over the Thanksgiving holiday weekend is expected to motivate drivers to travel and shop. The price of gasoline futures rose nearly 3 percent, to finish at US$2.5618 a gallon in New York, a gain of 7.28 cents.
At the pump, retail gasoline fell almost a penny to a national average of US$3.34 per gallon yesterday, according to AAA, Oil Price Information Service and Wright Express. In coming days the higher price of wholesale gasoline could push up pump prices.
Gasoline demand has been falling in the US for the past several months. It began to drop sharply as prices rose above US$4 per gallon in many states last winter and spring. Current pump prices, while still high, are 16 percent below the peak national average of US$3.98 per gallon reached on May 5.
In other energy trading in New York yesterday, natural gas rose 2 cents to finish at US$3.4150 per 1,000 cubic feet, and heating oil rose 4 cents to end the day at US$3.0346 a gallon.
West Texas Intermediate crude, the benchmark used to price oil in much of the US, rose US$1.09 to end at US$98.01 a barrel in New York. Brent crude, which is used to price oil produced in many foreign countries, rose US$1.99 to finish at US$108.65 a barrel in London.
Oil prices rose on worries that new international sanctions on Iran would reduce the flow of oil from the world's fourth biggest oil producer. Also large, violent protests in Egypt stirred fears that upheaval in the region could spread and disrupt supplies. Egypt is not a major oil producer, but it does control important energy supply lines and wields considerable influence in the region.
The worst fears about Europe's debt crisis - that it could lead to a lending crisis and financial gridlock around the world - were allayed somewhat yesterday by the announcement of an International Monetary Fund plan designed to help prevent the debt crisis in Europe from spreading. The IMF plan would provide quick cash on flexible terms to countries facing sudden financial stress.
Concerns remain that Europe's debt crisis is pushing the region toward recession, which would slow industrial activity in Europe and in countries around the world that export to Europe.
In the US, the Commerce Department said the economy grew more slowly over the summer than the government had earlier estimated. That picture of a sluggish economy helped drive the stock market mostly lower yesterday.
When the global economy slows, demand for crude oil and refined products like diesel and gasoline falls because fewer goods are produced and shipped, and people travel less. Even with yesterday's gain, oil is down 5 percent since last Wednesday, when it spiked to US$102.59 per barrel.
"The market is concerned on the one hand about the rate of economic growth," said Andrew Lipow, an independent oil analyst based in Houston. "On the other hand, issues in the Middle East are continuing."
There was some encouraging economic news in the US, however, that helped push oil higher yesterday. The government reported that inventories of goods fell over the summer. That raised hopes that the economy could grow faster than expected in the current quarter, if factories crank up to restock shelves.
And a mild weather forecast for much of the US over the Thanksgiving holiday weekend is expected to motivate drivers to travel and shop. The price of gasoline futures rose nearly 3 percent, to finish at US$2.5618 a gallon in New York, a gain of 7.28 cents.
At the pump, retail gasoline fell almost a penny to a national average of US$3.34 per gallon yesterday, according to AAA, Oil Price Information Service and Wright Express. In coming days the higher price of wholesale gasoline could push up pump prices.
Gasoline demand has been falling in the US for the past several months. It began to drop sharply as prices rose above US$4 per gallon in many states last winter and spring. Current pump prices, while still high, are 16 percent below the peak national average of US$3.98 per gallon reached on May 5.
In other energy trading in New York yesterday, natural gas rose 2 cents to finish at US$3.4150 per 1,000 cubic feet, and heating oil rose 4 cents to end the day at US$3.0346 a gallon.
- 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.
