Related News
Oil rises above US$87 even as dollar gains
Source: Agencies |
November 9, 2010, Tuesday
|
Online Edition
Online Edition
OIL prices rose yesterday on positive news on U.S. jobs data suggesting demand for crude is growing, trumping the effects of a stronger dollar.
Benchmark oil for December delivery settled up 21 cents at US$87.06 a barrel on the New York Mercantile Exchange - the high for the year. Analysts think oil prices could climb to US$90 a barrel by year's end.
Oil prices reached US$87.49 earlier yesterday, eclipsing the previous intraday high of US$87.15 a barrel in early May. The price has risen more than 16 percent since early September.
"For now, it's all about crude and it's all about the perception that crude is one of the greatest (investment) places to park your money," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.
Oil fell back in later trading as the firmer dollar made commodities more expensive - and less attractive - for investors holding other currencies.
The dollar mostly bounced higher against the euro yesterday, building on Friday's gains as debt woes in Ireland reawakened concerns about the euro area's economic prospects
In late trading in New York, the euro dropped to US$1.3923 from US$1.4045 late Friday. The British pound fell to US$1.6132 from US$1.6189. But the dollar slipped to 81.21 Japanese yen from 81.32 yen.
Gains in the oil price last week stemmed from the U.S. Federal Reserve's decision to sink US$600 billion into buying Treasurys over the next eight months to stimulate the sluggish economy by lowering long-term interest rates.
There was encouraging news on the economic front, as the Labor Department reported on Friday that employers added 151,000 jobs in October, the first net gain in five months. The unemployment rate remained at 9.6 percent.
The jobs report could signal more improvement in the economy, which could lead to stronger demand from consumers and businesses for fuel. In the short-term, however, improved economic indicators could strengthen the dollar and dampen enthusiasm for oil.
Oil is priced in dollars and becomes cheaper for holders of foreign currency when the dollar is weaker against other currencies.
In other Nymex trading in December contracts, heating oil rose 1.29 cents to settle at US$2.3977 a gallon, gasoline slipped 0.15 cent to US$2.1785 a gallon and natural gas added 15.1 cents to settle at US$4.088 per 1,000 cubic feet.
In London, Brent crude gained 35 cents to settle at US$88.46 a barrel on the ICE Futures exchange.
Benchmark oil for December delivery settled up 21 cents at US$87.06 a barrel on the New York Mercantile Exchange - the high for the year. Analysts think oil prices could climb to US$90 a barrel by year's end.
Oil prices reached US$87.49 earlier yesterday, eclipsing the previous intraday high of US$87.15 a barrel in early May. The price has risen more than 16 percent since early September.
"For now, it's all about crude and it's all about the perception that crude is one of the greatest (investment) places to park your money," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.
Oil fell back in later trading as the firmer dollar made commodities more expensive - and less attractive - for investors holding other currencies.
The dollar mostly bounced higher against the euro yesterday, building on Friday's gains as debt woes in Ireland reawakened concerns about the euro area's economic prospects
In late trading in New York, the euro dropped to US$1.3923 from US$1.4045 late Friday. The British pound fell to US$1.6132 from US$1.6189. But the dollar slipped to 81.21 Japanese yen from 81.32 yen.
Gains in the oil price last week stemmed from the U.S. Federal Reserve's decision to sink US$600 billion into buying Treasurys over the next eight months to stimulate the sluggish economy by lowering long-term interest rates.
There was encouraging news on the economic front, as the Labor Department reported on Friday that employers added 151,000 jobs in October, the first net gain in five months. The unemployment rate remained at 9.6 percent.
The jobs report could signal more improvement in the economy, which could lead to stronger demand from consumers and businesses for fuel. In the short-term, however, improved economic indicators could strengthen the dollar and dampen enthusiasm for oil.
Oil is priced in dollars and becomes cheaper for holders of foreign currency when the dollar is weaker against other currencies.
In other Nymex trading in December contracts, heating oil rose 1.29 cents to settle at US$2.3977 a gallon, gasoline slipped 0.15 cent to US$2.1785 a gallon and natural gas added 15.1 cents to settle at US$4.088 per 1,000 cubic feet.
In London, Brent crude gained 35 cents to settle at US$88.46 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.
