| Oil prices "Rebound" After Down Sharply |
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| Friday, 17 June 2011 00:00 | |||||||
Page 1 of 2 Oil prices "Rebound" After Down SharplyNEW YORK (AFP) - Oil prices 'rebound' (turned up) on Thursday, after a plunge the previous day amid growing concerns about Greece's debt crisis and the dollar are sharply higher, dealers said. New York's main contract, light sweet crude or West Texas Intermediate (WTI) for July delivery closed at 94.95 dollars per barrel, an increase of 14 cents from Wednesday. In London, Brent North Sea crude oil for August delivery added 1.01 dollars to settle at 114.02 dollars a barrel. Oil prices have dipped on Wednesday as financial markets around the world confused by the prospect of default (failure) Greece's debt if the country fails to ensure the euro zone bailout (bailout) the second. New York's benchmark contract closed down more than four dollars after drowning in intraday trading (daily) to its lowest level since February. "After yesterday, we should see some relief rally but the weakness of the euro and worries about Greece's debt actually makes the price of stuck," said Matt Smith at Summit Energy. "The direct impact comes from the euro, because of its relationship with the dollar," said Smith. The euro fell sharply against the dollar on Wednesday and Thursday as the European Union grapple with the possibility of having to pour more aid to Greece. A stronger greenback tends to push the dollar-priced oil by making it more expensive for buyers using weaker currencies. Smith said that other factors have helped to offset fears of debt, to maintain oil prices in New York stable. He cited economic data that is "relatively positive" in the United States, the world's major oil-consuming countries, and the International Energy Agency (IEA) revised up its global demand forecast for this year. New claims for U.S. unemployment benefits fell to 414,000 in the week ended June 11, a decrease of four percent from the previous week, and U.S. housing starts grew more than expected in May, rebounded 3.5 percent from April. The IEA, in its monthly report on Thursday raised its forecast for 2011 global oil demand by 0.1 million barrels per day to 89.3 million barrels, AFP reported. (A026/A027/K004) Editor: B Kunto Wibisono
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