Low Confidence & Weak Dollar Drive Up Oil Price

The AFP Reports:

World oil prices were higher on Thursday, winning support from firmer equities and the weaker dollar after recent falls that were sparked by downbeat news in key consumer the United States. New York's main contract, light sweet crude for delivery in September, climbed 29 cents to 77.28 dollars a barrel. Brent North Sea crude for September gained 28 cents to 76.34 dollars in early afternoon London deals. Analysts said the weaker dollar spurred some buying because oil is traded in the US currency, making the commodity cheaper for holders of stronger units

These...

Posted on 07/29/2010 at 14:09.
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Crude Stablizes as Bonnie Dissipates

Tropical Storm Bonnie, which was on course to disrupt Gulf oil production and cleanup efforts alike, has fortunately failed to pick up steam. According to Bloomberg, oil prices are likely to maintain at their current levels throughout the summer.

“It’s going to take better macroeconomic news or perhaps storm activity in the Gulf of Mexico to spring prices from their narrow trading range,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. Front-month futures prices haven’t settled below $70 since May 25 or above $80 since May 4. The 30-day range is $71.09 to $79.60.

Tropical...

Posted on 07/26/2010 at 13:58.
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Developing Nations Near Turning Point

An International Energy Agency report released Monday notes that not only are OPEC countries nearing their lowest ever spare capacity, but developing nations are about to reach a kind of critical mass for oil demand. According to the Dallas Blog:

Demand for oil products, especially transportation fuels, is increasing rapidly. One can place blame on all those developing nations whose populations have been approaching the crucial $3,000 per capita GDP level �“ that pivotal moment when, as revealed by the IEA, “a middle class emerges, eager to purchase cars, fly in airplanes, install air-conditioners and, more generally, use energy consuming products. ‘People can’t blame a lack of refinery capacity, the IEA claims in refinery upgrades is proceeding apace; and doesn’t appear likely to be a difficulty in the near future. Yet overall, supply of the raw product �“ gas and oil �“ is having a harder and harder time to keep up with demand.

This...

Posted on 07/15/2010 at 12:07.
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AP: Oil Prices Climb on Improving Economic News

A combination of great earnings reports by Alcoa and CSX and increased oil demand in third world countries contributed to rising oil prices today, according to the Associated Press.

"After all the bad economic news over the last six weeks or so, good earnings reports suggest companies have money and they can spend some of that, and that makes people feel a little more ebullient about the market," said Michael Lynch, president of Strategic Energy & Economic Research. The International Energy Agency predicted 2011 global oil demand would increase by 1.3 million barrels a day, or 1.6 percent, to 87.8 million barrels a day, largely due to economic growth in emerging countries.

Thankfully,...

Posted on 07/13/2010 at 14:28.
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Pump Prices Lower, Oil UP

It may not cost you as much to drive this weekend, but beware! Oil prices went up $0.65 to finish the week at $76.09/barrel. Oil supplies dropped. Could be the weather. Phil Flynn points out hurricanes on the Pacific. Or could be platform evacs ahead of Hurricane Alex. Tune...

Posted on 07/10/2010 at 14:37.
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