Oil up to near $78 ahead of US economic reports
Oil prices gained slightly to stay above $77 on Monday, backed by the weaker dollar and strong economic data in China, which raised hopes for an increase in energy demand.
By mid-afternoon in Europe, benchmark crude for December delivery was up 27 cents to $77.27 a barrel in electronic trading on the New York Mercantile Exchange.
The contract fell $2.87 to settle at $77.00 on Friday as the dollar gained and stock markets dropped on news U.S. consumer spending and confidence had fallen in September.
Investors will be looking to a slew of economic indicators this week for further clues about the strength of the U.S. economic recovery. The Labor Department’s October employment report will likely be the most closely watched report, but data on manufacturing, services and home sales could also move markets.
The Federal Reserve will also comment after a two-day meeting on interest rate policy.
Meanwhile, analysts were encouraged by the rise manufacturing activity in China, which could be a stimulus for greater oil demand.
Danske Bank said the data suggested that “the Chinese recovery remains strong and might even be gaining further strength following a slowdown during (the third quarter).”
Oil has slumped from its 2009 high of $82 a barrel last month as the dollar reversed some of its earlier losses, but on Monday the euro gained again on the U.S currency, rising to $1.4745 from $1.4714 on Friday.
“(Oil) prices may not retract too sharply, but the balloon of irrational exuberance has been, at least temporarily, deflated,” energy consultancy The Schork Group said in a report Monday.
Analysts at Cameron Hanover said that “both stock markets and oil markets may have reached seasonal peaks” as the economy was “improving, but it is doing it very unevenly.”
Investors will be paying attention to third quarter corporate earnings results this week.
On Monday, Ford Motor Co., surprised the market by reporting net income of nearly $1 billion in the third quarter and forecast a “solidly profitable” 2011. Ford lost more than $14.6 billion in 2008 and hasn’t posted a full-year profit since 2005.
Cisco Systems Inc., Kraft Foods Inc., Marathon Oil Corp., Starbucks Corp. and Time Warner Inc. are also scheduled to report earnings.
In other Nymex trading, heating oil rose 1.01 cents to $2.0153 a gallon. Gasoline for December delivery fell 0.10 cent to $1.9585 a gallon. Natural gas for December delivery fell 5.2 cents to $4.993 per 1,000 cubic feet.
In London, Brent crude for December delivery was up 45 cents at $75.65 on the ICE Futures exchange.
Associated Press writer Alex Kennedy in Singapore contributed to this report.
Related News
Oil rises above $70 in Asia amid weaker US dollar, mixed crude inventory dataOctober 7th, 2009 Oil rises above $70 in Asia as US dollar weakensSINGAPORE — Oil prices rose above $70 a barrel Thursday in Asia amid a weakening U.S. dollar and mixed crude inventory data.
Metals prices mixed as investors weigh dollar weakness, concerns about China; oil surgesAugust 19th, 2009 Metals mixed, oil surges on drop in inventoriesNEW YORK — Prices for metals were mixed Wednesday, with gold getting some support from a slightly weaker dollar, and other metals falling on concerns over a potential drop in demand from China. Gold for December delivery added $5.60 to $944.80 an ounce on the New York Mercantile Exchange, as the dollar slid against the Japanese yen and the British pound.
Weaker dollar, more upbeat outlook on economy helps lift metals; grains up after USDA reportAugust 12th, 2009 Metals rise on weak dollar, upbeat outlookNEW YORK — A weaker dollar and a more upbeat outlook on the economy sent prices for gold, copper and other metals slightly higher. Investors put their money to work in stocks and commodities Wednesday, and pulled out of safe-haven assets like Treasurys and the U.S.
Euro higher at $1.4173 in European morning trade as investors await latest Fed statementAugust 11th, 2009 Euro higher at $1.4173 as Fed rate decision loomsFRANKFURT — The euro rose against the dollar Tuesday as investors awaited the outcome of a two-day monetary policy meeting at the U.S. Federal Reserve.
Euro rises to $1.4295 in early European afternoon trading as world markets edge higherAugust 3rd, 2009 Euro at $1.4295 in European afternoon tradingFRANKFURT — The euro rose against the dollar Monday after recent reports out of the U.S. and China helped push equities and commodities higher.
US dollar mostly higher, gold rises in European morning tradingJuly 23rd, 2009 US dollar mostly higher in European tradingLONDON — The U.S. dollar was mostly higher against other major currencies in European trading Thursday morning.
Oil rises above $64 in afternoon European trading on strong company results, weaker dollarJuly 20th, 2009 Oil rises above $64 on strong corporate resultsOil prices rose to above $64 a barrel Monday as strong second-quarter company earnings boosted investor optimism and pushed stocks in Asia and Europe higher. A weaker U.S.
US dollar mostly higher, gold down in European morning tradingJuly 10th, 2009 US dollar mostly higher, gold down in EuropeLONDON — The U.S. dollar was mostly higher against other major currencies in European trading Friday morning.
US dollar rises, gold falls in European tradingJuly 2nd, 2009 US dollar higher in European trading, gold fallsLONDON — The U.S. dollar was up against other major currencies in European trading Thursday.
US dollar higher, gold down in European tradingJune 29th, 2009 US dollar up, gold down in European tradingLONDON — The U.S. dollar was mostly higher against other currencies in European trading Monday.
US dollar mixed, gold higher in European tradingJune 18th, 2009 US dollar mixed, gold higher in European tradingLONDON — The U.S. dollar was mixed against other major currencies in European trading Thursday.
US dollar, gold rise in European morning tradingJune 18th, 2009 US dollar rises in EuropeLONDON — The U.S. dollar was higher against other major currencies in European trading Thursday morning.
US dollar higher, gold lower in European morning tradingJune 8th, 2009 US dollar rises in European tradingLONDON — The U.S. dollar was higher against other major currencies in European trading Monday morning.
US dollar mostly higher, gold rises in European morning tradingMay 11th, 2009 Dollar up, gold rises in morning tradingLONDON — The U.S. dollar was mostly higher against other major currencies in European trading Monday morning.
US dollar mostly higher, gold higher in European morning tradingApril 27th, 2009 US dollar mostly higher in EuropeLONDON — The U.S. dollar was mostly higher against other major currencies in European trading Friday morning.
Loading ...