| Subject: Re: Oil prices rise, but more declines expected |
Author:
Boots_and_koots
|
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: 04:46:19 10/30/04 Sat
In reply to:
Boots_and_koots
's message, "Oil prices rise, but more declines expected" on 04:45:10 10/30/04 Sat
news link http://www.boston.com/business/articles/2004/10/30/oil_prices_rise_but_more_declines_expected/
>Oil prices rise, but more declines expected
>Rising inventories in US, rate hike in China sparked
>downward trend
>
>By Associated Press | October 30, 2004
>
>LONDON -- Oil prices bounced higher yesterday
>following two days of sharp declines that came on the
>heels of rising inventories of crude in the United
>States and a move by China to cool its economy.
>ADVERTISEMENT
>
>
>Prices rose ahead of the weekend as traders sought to
>protect themselves in the event of a supply disruption
>before Monday. But traders said they expect prices to
>move lower again by early next week in anticipation of
>the US Energy Department's next petroleum supply
>report.
>
>Light crude for December delivery rose 84 cents to
>$51.76 per barrel on the New York Mercantile Exchange.
>In London, December Brent crude futures gained 61
>cents to $48.98 per barrel.
>
>The slide in prices began Wednesday after the US
>government said crude supplies had increased by 4
>million barrels to 283.4 million barrels last week --
>roughly double the increase Wall Street was expecting.
>Then China raised its interest rates for one-year
>loans on Thursday -- the first increase in more than
>nine years. Beijing is trying to curb rising
>investment that has kept economic growth at over 9
>percent a year, caused oil demand to surge and has
>pushed inflation to a seven-year high.
>
>Some analysts believe the recent oil price rally is
>over.
>
>Ed Silliere, vice president of risk management at
>Energy Merchant in New York, said, "The latest leg --
>if it is not in fact the last leg -- of the bull
>market, is over."
>
>"When it nearly hit $56 [on Monday], the market was
>really pushing the boundaries of its highs," said
>Daniel Hynes, energy analyst at ANZ Bank in Melbourne.
>"Once we got the big increase with US stocks, it was
>enough of a spark . . . it gained momentum after China
>raised interest rates.
>
>While crude prices are still up by more than 70
>percent from a year ago, they would need to surpass
>$90 per barrel to approximate the record high, in
>inflation-adjusted terms, set in 1980.
>
>In Jakarta, OPEC president Purnomo Yusgiantoro said he
>expected the downward trend to gain momentum.
>
>Also allaying oil supply worries was news of some
>recovery in the hurricane-hobbled Gulf of Mexico.
>Daily production among the Gulf of Mexico platforms
>remains around 20 percent below normal since Hurricane
>Ivan hit the region in mid-September.
>© Copyright 2004 Globe Newspaper Company.
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
| |
Feedback: 