Business Management Guidelines

Posts Tagged ‘Crude oil prices soar’

Oil prices rebounding “(turned up) sharply on Wednesday (14/4/2010), after five consecutive sessions fell, amid an unexpected decline in crude oil stockpiles in the United States – the world’s largest energy user.

New York’s main contract, light sweet crude for May delivery, jumped 1.79 dollars to 85.84 dollars per barrel. Brent crude oil for May delivery rose 1.43 dollars to 86.15 dollars per barrel.

Markets reacted to a report by the U.S. Energy Department Wednesday that U.S. crude oil inventories have fallen 2.2 million barrels last week, showed demand for oil increased to trigger the biggest economic recovery in the world. Analysts had been expecting a 1.1 million barrel increase.

“Additionally, we see some increase in demand for gasoline and distillate demand compared to last year’s figures,” said analyst Andy Lipow of Lipow Oil Associates.

“The market took it along with the signals from Wall Street about earnings, that the economy continues to improve,” he said.

Company’s positive earnings report supported expectations of a steady economic recovery have pushed U.S. stock exceeds the key rate. “During the last week, there has been a record trading volume on NYMEX (New York Mercantile Exchange, the largest futures exchange in the world), lots of new money coming into the commodities market,” said Lipow.

The market was also reacting to news that oil producers’ cartel Opec projecting moderate growth in world oil demand this year and the announcement by the British-Dutch oil group, Shell, which has cut crude oil production in Nigeria to enable repairs, traders said.
(Source: compass)