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Oil rises on positive economic news
Source: Agencies |
September 25, 2010, Saturday
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CRUDE oil prices rose yesterday along with stocks on news that indicated an improving economy.
The Commerce Department said orders for durable goods excluding the transportation sector rose 2 percent - the best showing in five months as companies invested in computers, communications equipment and machinery.
A separate report from the Commerce Department showed sales of new homes in August rebounded slightly.
Benchmark oil for November delivery rose US$1.31 to settle at US$76.49 a barrel on the New York Mercantile Exchange.
In London, Brent crude rose 76 cents to settle at US$78.87 a barrel on the ICE Futures exchange.
The Dow Jones industrial average rose 1.8 percent in late afternoon trading, heading for a fourth week of gains. That would be the longest winning streak since stocks rose to their highest levels of the year in late April.
A surprise jump in business confidence in Germany also tempered worries about Europe's economy, driving stocks higher.
Meanwhile, hurricane activity appeared to intensify yesterday. A hurricane warning was in effect for the coasts of Nicaragua and Honduras as Tropical Storm Matthew approached Central America.
If a hurricane disrupts Gulf oil and gas production, at least some of it could be replaced by refineries elsewhere, said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service. For example, more foreign refiners can produce gasoline for US markets in the fall and winter.
"After Sept. 15, the odds are that if you get hurricanes, you might have that emotional impact in the market, but they are much more demand destroyers than supply destroyers," he said.
In other Nymex trading, heating oil rose 1.61 cents to settle at US$2.1306 a gallon, gasoline added 2.97 cents to settle at US$1.9471 a gallon and natural gas lost 13.8 cents to settle at US$3.881 per 1,000 cubic feet.
The Commerce Department said orders for durable goods excluding the transportation sector rose 2 percent - the best showing in five months as companies invested in computers, communications equipment and machinery.
A separate report from the Commerce Department showed sales of new homes in August rebounded slightly.
Benchmark oil for November delivery rose US$1.31 to settle at US$76.49 a barrel on the New York Mercantile Exchange.
In London, Brent crude rose 76 cents to settle at US$78.87 a barrel on the ICE Futures exchange.
The Dow Jones industrial average rose 1.8 percent in late afternoon trading, heading for a fourth week of gains. That would be the longest winning streak since stocks rose to their highest levels of the year in late April.
A surprise jump in business confidence in Germany also tempered worries about Europe's economy, driving stocks higher.
Meanwhile, hurricane activity appeared to intensify yesterday. A hurricane warning was in effect for the coasts of Nicaragua and Honduras as Tropical Storm Matthew approached Central America.
If a hurricane disrupts Gulf oil and gas production, at least some of it could be replaced by refineries elsewhere, said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service. For example, more foreign refiners can produce gasoline for US markets in the fall and winter.
"After Sept. 15, the odds are that if you get hurricanes, you might have that emotional impact in the market, but they are much more demand destroyers than supply destroyers," he said.
In other Nymex trading, heating oil rose 1.61 cents to settle at US$2.1306 a gallon, gasoline added 2.97 cents to settle at US$1.9471 a gallon and natural gas lost 13.8 cents to settle at US$3.881 per 1,000 cubic feet.
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