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Oil settles near US$100
Source: Agencies |
July 23, 2011, Saturday
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OIL prices rose yesterday as US lawmakers continued to debate spending plans and raising the nation's debt ceiling. Failure to raise the limit by the Aug 2 deadline means the US would default on its debt.
Benchmark West Texas Intermediate crude rose 74 cents to settle at US$99.87 a barrel on the New York Mercantile Exchange. Brent crude gained US$1.16 to settle at US$118.67 per barrel on the ICE Futures exchange in London.
Investors worry that failure to resolve debt problems in the US and Europe could cause the global economy to slow, and cut demand for commodities such as oil.
Fitch ratings agency said Greece will be in default on its debt as a result of a new bailout plan crafted by European leaders that asks investors to take losses on the country's bonds.
Debt issues on both continents have "played havoc with the price of oil in recent weeks," PFG analyst Phil Flynn said. Since the beginning of the month, the price of oil has ranged from about US$94 a barrel to just over US$100.
The dollar has contributed to oil's volatility. It's been up and down against major currencies this month. Oil, like most commodities, is priced in dollars. If the dollar weakens, oil becomes more of a bargain for investors who use other currencies and the price tends to rise.
In yesterday trading for other Nymex contracts, heating oil rose 2.86 cents to settle at US$3.1415 per gallon, gasoline futures gained 3.39 cents to settle at US$3.0906 per gallon and natural gas rose less than a penny to settle at US$4.370 per 1,000 cubic feet.
Benchmark West Texas Intermediate crude rose 74 cents to settle at US$99.87 a barrel on the New York Mercantile Exchange. Brent crude gained US$1.16 to settle at US$118.67 per barrel on the ICE Futures exchange in London.
Investors worry that failure to resolve debt problems in the US and Europe could cause the global economy to slow, and cut demand for commodities such as oil.
Fitch ratings agency said Greece will be in default on its debt as a result of a new bailout plan crafted by European leaders that asks investors to take losses on the country's bonds.
Debt issues on both continents have "played havoc with the price of oil in recent weeks," PFG analyst Phil Flynn said. Since the beginning of the month, the price of oil has ranged from about US$94 a barrel to just over US$100.
The dollar has contributed to oil's volatility. It's been up and down against major currencies this month. Oil, like most commodities, is priced in dollars. If the dollar weakens, oil becomes more of a bargain for investors who use other currencies and the price tends to rise.
In yesterday trading for other Nymex contracts, heating oil rose 2.86 cents to settle at US$3.1415 per gallon, gasoline futures gained 3.39 cents to settle at US$3.0906 per gallon and natural gas rose less than a penny to settle at US$4.370 per 1,000 cubic feet.
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