| Exchange - Translucent Oil 82 Dollars For First Time Since May |
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| Wednesday, 04 August 2010 09:01 | |||||||
Page 1 of 2 New York - The price of oil through the 82 dollars on Tuesday, for the first time since May despite the U.S. economic data "bearish" (lethargic).New York's main contract, light sweet crude oil for September delivery, rose 1.21 dollars to 82.55 dollars per barrel. In a spectacular increase, the contract has received more than five dollars or seven percent in the last four sessions. North Sea Brent crude in London for September delivery jumped 1.86 dollars to 82.68 dollars per barrel. Prices rose even though economic data in the United States is pressing the weak equity market. The United States is the world's leading energy consumer. "We saw some buying action," said analyst John Kilduff of Again 'Capital, a hedge fund that focuses on energy. Some analysts believe that the market is far ahead of reality on the ground. "Oil prices raced higher, on expectations that economic conditions will bring increased energy demand growth, 'said Mike Fitzpatrick of MF Global. But he warned that "financial markets clearly able to walk in front of economic reality, as has been shown from time to time." On Tuesday the market digests a number of bearish U.S. economic data, including a decrease in consumption expenditure is less than 0.1 percent compared with the same percentage rise in May, according to the government. Consumer spending is a key driver of U.S. economic growth, usually contribute to two thirds of the output. U.S. factory orders also declined in June, the decline for the second consecutive month, the Ministry of Commerce said. And a report by the National Association of Realtors show the number of signing contracts to buy existing homes in the U.S. suddenly fell to its lowest level in nine years. The continued weakening dollar on Tuesday triggered a higher oil price. A weaker greenback makes dollar-priced commodities cheaper for buyers using stronger currencies and therefore tends to stimulate demand. Opportunity to penetrate the euro at 1.32 dollar while the Japanese yen reaching new highs against the greenback in 2010. Traders can not wait for the weekly report Wednesday on U.S. energy inventories. Analysts expect crude oil supply fell in the latest weekly inventory report from the department of energy, because the effect of Tropical Storm Bonnie, which blew through the Gulf of Mexico at the end of last month. They estimate 1.6 million barrel decline in oil inventories, gasoline stockpiles fell by 800 000 barrels and distillate stocks, including diesel and heating oil, will increase by 1.1 million barrels, according to Dow Jones Newswires. The market will also continue to monitor employment data on Friday, a key indicator for the economic health of the United States. (Xinhua / AFP) www.tenderoffer.biz
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