| Oil prices in New York Back Back After Approach 80 Dollars |
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| Saturday, 24 July 2010 12:27 | |||||||
Page 1 of 2 New York - New York oil prices rally toward 80 dollars on Friday because of Tropical Storm Bonnie was spinning toward the Gulf of Mexico, but pulled back after the "stress test" (endurance test) on European banks was announced.New York's main contract, light sweet crude for delivery in September, reaching 79.60 dollars per barrel, a level last seen on May 5, before ending down 32 cents to 78.98 dollars. Meanwhile, Brent North Sea crude oil, London, for September delivery settled down 37th cents to 77.45 dollars on. "By Bonnie wanted to be more like Jean-Claude Van Damme from the storm, crude oil complex to give back some gains from yesterday, although only slightly," analysts at BMO Capital Markets said in a statement. "With the euro continued to hit the U.S. dollar and equity markets continue to rally, the decline in crude oil is very limited, and 80 dollars may not be a pipe dream, "they said. The main focus turned to Bonnie Friday, a move towards the oil producing areas of the Gulf of Mexico, and the results of endurance test for eurozone banks, analysts said Sucden Myrto Sokou in London. The crew who work on BP evacuated a large oil spill on Friday, extending the area of environmental and economic nightmare. Closure in place for a week on the broken wells will remain but an effort to help solve the well becomes a permanent retreat back by Bonnie leads to evacuation because of the area. Bonnie was expected to reach the area on Saturday. "If Bonnie continued to strengthen, concerns about potential disruption to oil operations in the Gulf of Mexico continues, crude oil prices tend to move higher for the test area of 80 dollars," said Sokou. Results of stress tests European bank on Friday also hit the market since many analysts questioned the thoroughness of an assessment. Seven banks, mainly in Spain, failed a test of the 91 banks assessed for resistance to the economic turmoil. Neil MacKinnon, an economist at VTB Capital in London, said in a note that "looked like a whitewash and the initial reaction was one of skepticism on the part of the market." ING Bank analyst Chris Turner said the announcement CEBS "does not seem to have to disassemble anything` in the closet, "but added:" Is it still far enough away to be seen. " The European single currency rose slightly against the dollar Friday. A weak dollar tends to raise the price of oil in dollars because the commodity cheaper for buyers using stronger currencies, which in turn tends to stimulate demand and raise prices. (A026/K004) (ANTARA News/AFP)
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