Fluctuation In Oil Prices Over US Reserves
NEW YORK: Oil prices rose Wednesday, driven higher by a larger-than-expected decline in US crude reserves that suggested growing demand in the world’s biggest energy consumer.
New York’s main contract, light sweet crude for October delivery, finished at 72.51 dollars, a gain of 1.58 dollars from Tuesday’s closing level.
London’s Brent North Sea crude for November delivery, the new benchmark contract, climbed 1.81 dollars to 71.67 dollars a barrel.
The market also gained a lift from a Wall Street rally as equity investors took heart in official US economic data that bolstered optimism the world’s largest economy is pulling out of recession.
US industrial production jumped 0.8 percent in August, the second straight monthly gain after a revised 1.0 leap in July.
US consumer prices rose 0.4 percent in August, with the core inflation rate up a modest 0.1 percent. This served to ease fears about both deflation and resurgent inflation.
The drop in inventories “caused the rally in crude oil but in addition to that, the reaction of the stock market based on economic data is really what made the oil market rally during the day,” said Andy Lipow of Lipow Oil Associates.
The data reinforced expectations of recovery that had been given a shot in the arm by Federal Reserve chairman Ben Bernanke, who said Tuesday the recession “is very likely over.”
Fluctuation In Oil Prices Over US Reserves was first posted on September 17, 2009 at 12:42 pm.
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