Related News
Oil rises as stock markets rally
Source: Agencies |
August 10, 2010, Tuesday
|
Online Edition
Online Edition
OIL prices rose yesterday as stock market gains encouraged investors to buy back into the crude market after heavy losses last week, when weak U.S. jobs figures disappointed expectations.
Benchmark crude for September delivery rose 78 cents to settle at US$81.48 a barrel on the New York Mercantile Exchange. Oil has stayed above US$80 a barrel for six straight sessions.
Oil prices matched an increase in U.S. stock markets as traders and investors waited to see if the Federal Reserve plans to launch new economic stimulus programs after its Tuesday meeting. The Dow Jones Industrial Average rose about 45 points in afternoon trading. The Nasdaq and the S&P 500 were slightly higher.
Oil traders have been closely watching the stock markets to gauge consumer confidence in the economy, which Fed Chairman Ben Bernanke recently characterized as "unusually uncertain."
Oil's fall on Friday was sparked by a Labor Department report that showed private employers hired 71,000 workers in July - way below the level needed to lower the unemployment rate which remained stuck at 9.5 percent.
That suggests U.S. demand for fuel will remain subdued as Americans keep a tight rein on personal spending.
Several experts continued to highlight the fact that oil prices seem currently influenced more by technical considerations rather than fundamental principles of global supply and demand.
"The oil price is currently more influenced by technical indicators than by the demand-supply situation," said a report from Commerzbank in Frankfurt, which also said crude could come under pressure if it fell below the "psychologically important" mark of US$80. "From a fundamental view, this decline would be welcomed, because the oil market continues to be in strong oversupply at current prices."
In other Nymex trading in September contracts, heating oil rose 0.66 cent to settle at US$2.1538 a gallon, gasoline gained 0.60 cent to settle at US$2.1187 a gallon and natural gas fell 15.8 cents to settle at US$4.309 per 1,000 cubic feet.
In London, Brent crude added 83 cents to settle at US$80.99 a barrel on the ICE Futures exchange.
Benchmark crude for September delivery rose 78 cents to settle at US$81.48 a barrel on the New York Mercantile Exchange. Oil has stayed above US$80 a barrel for six straight sessions.
Oil prices matched an increase in U.S. stock markets as traders and investors waited to see if the Federal Reserve plans to launch new economic stimulus programs after its Tuesday meeting. The Dow Jones Industrial Average rose about 45 points in afternoon trading. The Nasdaq and the S&P 500 were slightly higher.
Oil traders have been closely watching the stock markets to gauge consumer confidence in the economy, which Fed Chairman Ben Bernanke recently characterized as "unusually uncertain."
Oil's fall on Friday was sparked by a Labor Department report that showed private employers hired 71,000 workers in July - way below the level needed to lower the unemployment rate which remained stuck at 9.5 percent.
That suggests U.S. demand for fuel will remain subdued as Americans keep a tight rein on personal spending.
Several experts continued to highlight the fact that oil prices seem currently influenced more by technical considerations rather than fundamental principles of global supply and demand.
"The oil price is currently more influenced by technical indicators than by the demand-supply situation," said a report from Commerzbank in Frankfurt, which also said crude could come under pressure if it fell below the "psychologically important" mark of US$80. "From a fundamental view, this decline would be welcomed, because the oil market continues to be in strong oversupply at current prices."
In other Nymex trading in September contracts, heating oil rose 0.66 cent to settle at US$2.1538 a gallon, gasoline gained 0.60 cent to settle at US$2.1187 a gallon and natural gas fell 15.8 cents to settle at US$4.309 per 1,000 cubic feet.
In London, Brent crude added 83 cents to settle at US$80.99 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.
