| Oil Prices Rise in London Sharp |
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| Wednesday, 10 February 2010 10:01 | |||
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London
- Oil prices rose sharply on Tuesday local time, as traders took their
cue from the fall of the U.S. dollar, after a sharp decline recently
due to weak demand for energy and the euro zone debt problems.
The market also received support from the prospect of another ferocious blizzard in the U.S. northeast region, which will increase demand for heating fuel. The main futures contract, New York, light sweet crude for March delivery, jumped 1.60 dollars to 73.49 dollars per barrel. Brent crude North Sea, London, for March delivery added 1.60 dollars also to be 71.71 dollars. "Today, market participants will watch the U.S. dollar movements, including the global capital markets for signs of further U.S. economic conditions," said Sucden analyst Sokou Myrto. Euro jumped back above 1.38 dollars on Tuesday amid speculation the European Union would help solve a fiscal crisis Greece after many players to bet against currencies in recent weeks, dealers said. They said news that the President of the European Central Bank (ECB) Jean-Claude Trichet left the central bank governors meeting in Sydney early to attend the EU summit in Brussels on Thursday to trigger the belief that a deal was in the process of workmanship. A weaker U.S. currency tends to increase the oil commodities priced in dollars because it becomes cheaper for buyers using stronger currencies. Afternoon trade in London, the euro rose sharply to 1.3807 dollars from 1.3648 dollars in New York at the end of Monday. Last Friday, the euro has slumped to 1.3586 dollars, its lowest level since May 20, 2009, because financial markets shaken by fears the euro zone debt. Oil prices recovered slightly on Monday after a massive sales fell last week, triggered by weak U.S. jobs data and debt issues in Europe. Reports that the debt and deficit problems of Greece, Spain and Portugal - all included in the 16-country eurozone - will be high on the agenda of key EU meeting on Thursday to help to support financial markets. Elsewhere, the Atlantic coast, the United States preparing for a winter storm this week after the new out of the weekend snowstorm. "So far, the oil market fundamentals have improved gradually and the attack of cold weather recently possible to accelerate the process of further correction," said Barclays Capital analysts in a note. "The emergence of stronger hurricanes in the Atlantic at the weekend the U.S. has provided support to prices." Sucden analyst says that traders Soukou will divert their attention to a report Wednesday from the Energy Information Administration (EIA) the U.S. government and the Organization of Petroleum Exporting Countries (OPEC). "Tomorrow, the main focus will switch to a monthly report from the EIA and OPEC that can provide more signs of recovering demand for information on energy products." | Antaranews.com | tenderoffer.biz |
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