NEW YORK (Dow Jones) – Crude oil ventured slightly higher Monday despite lower equity markets as the dollar fell slightly against competing currencies. Light, sweet crude for September delivery recently traded up 25 cents, or 0.3% at $ 75.64 a barrel on the New York Mercantile Exchange. Brent crude on the ICE Futures Exchange traded down 1 cent at $ 75.10 per barrel.
Oil prices close treaded is neutral for the second straight session, pausing after a fall of more than $ 5 last week due to a weakening outlook for the global economy. With crude now firmly in the middle of its recent range between $ 70 and $ 80 per barrel are stockists watching the U.S. dollar as the market moves are looking for safer beleggingen such as shares, even a guide for future economic growth and demand for energy.
“The market is really focused on both of these things, not just the dollar, not only for the equity market,” said Phil Flynn, an oil analyst PFGBest. “For today, the dollar a more dominant role, but it slides back and forth.”
The euro was recently 0.7% higher against the dollar, trading at $ 1.2844. A weaker dollar makes oil cheaper for buyers in other currencies, allows for increased demand.
Although the stock market has led oil prices for months, traders turned to changes in the currency markets after a sharp rise in the dollar against the euro last week.
Meanwhile shares that are expected slightly lower open after a report in New York increased production activity at a slower pace than expected. The Empire State business conditions index edges up 7.10 to 5.08 in August from July, but economists had expected a reading of 8.5 in August.
Futures for the Dow Jones Industrial Average were recently 18 points to 10,248.
With the supply of oil and oil products is still high, the market focused on the declining economic recovery and its impact on oil demand. On Friday, the Organization of Petroleum Exporting Countries raised its forecast for global oil demand to de growth this year, corresponding to a similar revision of the International Energy Agency earlier in the week.
But both groups warned that their predictions can be reversed, the economy remains sluggish.
Japan said the economy grew by only 0.4% in the second quarter of the first quarter of the year, the latest report showing tepid growth after the U.S. Federal Reserve lowered its growth forecasts for the second quarter earlier this month.
As such, some market watchers say the oil prices continue to fall with further worrying economic data.
“A further sell-off of this would bring prices into closer alignment with the prevailing macro-picture, namely one where growth virtually across the world seems to slow down,” said Edward Meir, an analyst from MF Global, in a client note. “This is the probability of a sharp drop in crude oil prices to below $ 70 mark unlikely given that we have not the most dangerous part of what is believed to be a very busy hurricane season entry.”
The National Hurricane Center said there was a 60% chance that an area of low pressure in the northern Gulf of Mexico will develop into a tropical cyclone within the next two days.
Front-month September reformulated gasoline blend stock, or RBOB, recently traded 0.3 cents higher at $ 1.9426 a gallon. September heating oil traded 0.44 cents higher at recent $ 2 per gallon.
source:online.wsj
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