| Oil Prices Rise Above 74 U.S. Dollars |
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| Thursday, 11 February 2010 09:28 | |||
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New
York - Oil prices climbed above 74 U.S. dollars per barrel on Wednesday
local time, after the U.S. Energy Information Administration (EIA)
raises forecast for oil demand and crude prices this year.
Reverse the previous decline in oil after the U.S. dollar rose against other currencies and equity markets fell. A strengthening dollar could make oil, priced in dollars, less attractive investors. New York futures contract, oil, light sweet crude for March delivery ended 77 cents higher at 74.52 dollars per barrel, closing the three-day increase in oil has risen 4.7 percent. Oil prices have fallen in the morning, slumped as low as 72.60 dollars per barrel. While crude futures of Brent North Sea, rose 41 cents to 72.56 dollars per barrel. EIA on Wednesday projected that world oil demand increased 1.2 million barrels per day by 2010 from the previous year, raising the estimated 120,000 barrels per day from the previous. The agency is also predicted oil prices will average 81 dollars per barrel in the second half of this year, up 9 percent from current levels. "An economic recovery and more tight supplies would help the price of oil, although we have not seen the supply stopped," said Gene McGillian of Tradition Energy in Stamford, Connecticut. "After indiscriminate selling last week, oil prices now stand." EIA demand projections opposite the Organization of Petroleum Exporting Countries (OPEC) on Wednesday cut the estimated demand for 2010 to quote the slow world economic recovery measures. Dollar peeling some increase against the euro after European reports suggest Greek debt rescue plan is in the process. A Greek bailout could ease the anxiety about the fiscal health of the European economy, boosting demand for risky assets such as oil, analysts said. "The news of the European economy has decided to help the Greek economy and perhaps other devices within the euro zone makes bullish risky assets," said Brad Samples, an analyst at Summit Energy in Louisville, Kentucky. Oil prices were under pressure after the Wednesday before the American Petroleum Institute industry group on Tuesday reported a big increase in U.S. crude oil inventories last week. Crude oil stocks in the United States, the largest oil consumer in the world, rose 7.2 million barrels to 337.6 million barrels in the week to February 5, the API said. The increase in crude oil inventories exceeded analyst estimates to rise 1.5 million barrels. Official stocks of the EIA, usually released on Wednesday, has been postponed until Friday, because the offices of the U.S. government shut down due to a snowstorm. | antaranews.com | tenderoffer.biz |
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