Oil steady after approaching $70
VIENNA — Oil was steady around $69 a barrel Friday after approaching $70 the day before, when the first drop in U.S. weekly unemployment claims in five months provided another sign that demand for crude could improve.
Investors looked to the crucial U.S. payrolls data for May, due later Friday, for more direction.
Benchmark crude for July delivery slipped 4 cents to $68.77 a barrel by midday in European electronic trading on the New York Mercantile Exchange. On Thursday the contract shot up $2.69 to settle at $68.81 after trading as high as $69.60.
Crude’s stellar rise — it now fetches roughly twice what it did only four months ago in dollar terms — is leading analysts to revise forecasts even further upward, with many now saying they expect a barrel to cost $80 or more by year’s end.
Oil prices have risen in tandem with global stock markets, and they soared this week to their highest levels since November, though the rally was briefly interrupted Wednesday by a jump in U.S. crude inventories.
Crude prices have been boosted by expectations that the dismal U.S. economy could be stabilizing and as some investors scoop up oil and other commodities as a hedge against a weak dollar.
The latest weekly reading on the U.S. economy showed a drop in the number of Americans on the unemployment insurance, albeit slightly, for the first time in 20 weeks. That augured well for Friday’s closely watched monthly jobs report.
The price of crude is likely to continue rallying even though its rise belies weak economic fundamentals that will keep demand for gasoline subdued, analysts say.
“There is room for the market to go higher,” said Jonathan Kornafel, Asia director for market maker Hudson Capital Energy in Singapore. “We could certainly see oil between $75 to $80 by the end of the year.”
Vienna’s JBC Energy noted that investment bank Goldman Sachs now “has revised its price forecasts, putting oil at $85 per barrel by the end of 2009″ — the year-end level that JBC had first put forward in January.
Hedge funds and other investors have piled into commodities like oil as the dollar weakens on expectations that the U.S. government’s massive stimulus spending will cause inflation, he said.
Weakness in the dollar tends to push oil prices higher since the benchmark contract is traded in the U.S. currency.
In other Nymex trading, gasoline for July delivery was up slightly at $1.96 a gallon while heating oil slipped marginally to fetch $1.78 a gallon. Natural gas for July delivery was up more than 3 cents at $3.85 per 1,000 cubic feet.
In London, Brent prices lost 35 cents to $69.36 a barrel on the ICE Futures exchange.
AP business writer Stephen Wright contributed to this report from Bangkok.
Related News
US stock futures little changed as investors await data on jobs, housingSeptember 24th, 2009 Stock futures steady ahead of jobs, housing dataNEW YORK — Stock futures are little changed as investors wait for more clues on how the economy is faring. The quiet trading Thursday follows declines in markets overseas that came after the Federal Reserve left interest rates unchanged and said the pace of economic activity has improved.
Oil rises above $68 in Asia as investors watch for US jobs reportSeptember 4th, 2009 Oil rises above $68 ahead of US jobs reportSINGAPORE — Oil prices peaked above $68 a barrel Friday in Asia as investors looked to a U.S. unemployment report later in the day for signs of economic recovery.
Oil hovers near $68 in Asia as investors eye US jobs reportSeptember 3rd, 2009 Oil hovers near $68 ahead of US jobs reportSINGAPORE — Oil prices hovered near $68 a barrel Friday in Asia as investors looked to a U.S. unemployment report later in the day for signs of economic recovery.
Oil falls below $66 in Europe as investors eye weak US consumption, brush off Japan's growthAugust 17th, 2009 Oil falls below $66 on worries of slow recoveryLONDON — Oil prices fell below $66 a barrel Monday as investors worried that crude demand will recover only slowly in the U.S. and brushed off upbeat economic growth data from Japan.
Oil hovers near $71 in Asia ahead of US retail reportsAugust 10th, 2009 Oil hovers near $71 as investors eye US consumersSINGAPORE —Oil prices hovered near $71 a barrel Monday in Asia as investors looked to signs later this week of the U.S. consumers' health.
Oil slips below $72 in Asia as investors eye US unemployment dataAugust 7th, 2009 Oil slips below $72 ahead of US unemployment dataSINGAPORE — Oil prices traded below $72 a barrel Friday in Asia as investors looked to U.S. monthly employment figures later in the day for signs the economy may be recovering.
Asia stock markets largely mixed as powerful rally stalls; Tokyo weaker ahead of earningsJuly 28th, 2009 Asia stocks narrowly mixed as earnings eyedHONG KONG — Asian stock markets fluctuated Tuesday, pausing from a powerful two-week rally fueled by optimism about company earnings. Markets were narrowly mixed, with Tokyo's benchmark index weakening after a nine-day winning streak as investors awaited second-quarter results from Japan's Nissan, Sony and mega lender Mitsubishi UFJ Financial Group later in the week.
Oil drifts below $67 in Asia as signs of improving US economy trigger rallyJuly 24th, 2009 Oil drifts below $67 amid improving US economySINGAPORE — Oil prices drifted below $67 a barrel Friday in Asia but mostly held onto gains made overnight amid signs of an improving U.S. economy. Benchmark crude for September delivery was down 31 cents to $66.85 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange.
Oil hovers above $66 in Asia after weak jobs numbers undermine investor confidenceJuly 3rd, 2009 Oil hovers above $66 in Asia after weak jobs dataSINGAPORE — Oil prices hovered above $66 a barrel Friday in Asia in light holiday trading a day after grim unemployment numbers from the U.S. and Europe sent crude prices tumbling.
Oil holds above $69 in Asia as investors look to US June unemployment reportJuly 2nd, 2009 Oil holds above $69 ahead of US jobs reportSINGAPORE — Oil prices lingered above $69 a barrel Thursday in Asia ahead of the release of a key U.S. unemployment figure.
Oil jumps above $69 in Asia as investors mull economy, US dollarJune 9th, 2009 Oil jumps above $69 amid 3-month rallySINGAPORE — Oil prices rose above $69 a barrel Tuesday in Asia as traders brushed off concerns that the doubling of crude since March is out of step with a weak global economy. Benchmark crude for July delivery was up 98 cents at $69.07 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
Stocks open higher as report says employers cut fewer-than-expected jobs in MayJune 5th, 2009 Stocks jump on better-than-expected jobs reportNEW YORK — Investors are cheering a government report that said employers cut fewer jobs than expected last month. Stocks rallied in the early going Friday after the Labor Department said 345,000 jobs were lost in May, significantly less than the half-million economists had been expecting and the fewest since September.
New US jobs data sends oil prices above $70 per barrelJune 5th, 2009 Oil prices spike above $70VIENNA — Oil prices are spiking above $70 per barrel for the first time since October. Prices jumped after a U.S.
Oil climbs higher in Asia, nearing $70 a barrel ahead of US jobs reportJune 5th, 2009 Oil approaches $70 in AsiaBANGKOK — Oil climbed above $69 a barrel Friday in Asia as the first drop in U.S. unemployment claims in five months provided another sign that weak demand for crude could improve.
Oil hovers just above $66 in Asia as US crude inventory data stymies 3-month rallyJune 4th, 2009 Oil hovers above $66 as 3-month rally cool offSINGAPORE — Oil prices hovered above $66 a barrel Thursday in Asia after a jump in U.S. crude inventories triggered a sharp pullback from a three-month rally.
Loading ...