Aug 14 2012
|more articles from|
OIL FUTURES: Crude Oil Prices Rise On Positive Macro Data
Tuesday, Aug 14, 2012
-- Market supported by hopes of additional stimulus measures
-- Overall sentiment is that market is on an uptrend, analysts say
-- Tight supply in the North Sea underpins prices
By Jenny Gross
The better-than-expected data calmed investors worried about the state of the two key euro-zone economies. Positive growth figures usually provide support for oil prices, as a more stimulated economy means increased trade and consumer spending and therefore increased demand for fuel.
At 1034 GMT, the September Brent contract on London's ICE futures exchange was up 41 cents, or 0.4%, at $114.01 a barrel. The September contract on the New York Mercantile Exchange was trading up 37 cents, or 0.4%, at $93.11 a barrel.
Aside from the positive macroeconomic data, supply disruptions around the world, such as in South Sudan, Yemen and Syria are also underpinning support amid sanctions against Iranian oil, analysts said.
"It's not necessarily what's new, but what is ongoing, that allows a rally in the oil price," said Harry Tchilinguirian, London-based head of commodity strategy at BNP Paribas.
Oil markets found support as investors hope central banks would implement fresh stimulus measures, Mr. Tchilinguirian said.
"We see prices continuing to rise in terms of the flat price in anticipation of a third round of quantitative easing, and that'll be an ongoing phenomenon for this month until we get to Jackson Hole speech," he said, referring to the U.S. Federal Reserve chairman's speech at the central bank's annual symposium in Jackson Hole, Wyoming.
Market participants will look to the data released later from the American Petroleum Institute. Commerzbank said U.S. crude oil stocks are expected to have decreased further in the past week.
At 1036 GMT, the ICE's gasoil contract for September delivery was trading $2.50 higher, or 0.3%, at $959.75 per metric ton, while Nymex gasoline for September delivery was up 79 points, or 0.3%, at $2.9986 per gallon.
-Write to Jenny Gross at email@example.com; Twitter: @jgginlondon
(END) Dow Jones Newswires
August 14, 2012 06:56 ET (10:56 GMT)
© Copyright Zawya. All Rights Reserved.
- UPDATE 1-Korean women scrap meeting Japanese mayor over brothel remarks
- REFILE-Elderly Korean women cancel meet with Osaka mayor over war brothel remarks
- Korean "grannies" cancel meet with Osaka mayor over war brothel remarks
- Solar plane completes second leg of cross-country flight in Texas
- College student snares record long Burmese python near Miami
- There's More