Oil eases off record over $106 a barrel
|
|
|
NEW YORK (Reuters) - Oil prices eased off a new record on Friday after buying by speculators hedging against the weaker dollar and inflation sent prices above $106 a barrel.U.S. oil fell 24 cents to $105.23 a barrel at 1:41 p.m. EST, trimming gains after hitting an all-time high of $106.54 earlier in the trading session. London Brent crude traded 26 cents lower at $102.35 a barrel."We rose earlier on the dollar play and expectations that the Fed may have to lower rates," said Rob Kurzatkowski, a futures analyst with optionsXpress."This has lately been an inflation and currency play."A government report showing a second straight month of contractions in U.S. payrolls spurred talk the Federal Reserve might cut interest rates again, weakening the dollar early in the day. The greenback later rebounded, helping to ease oil off earlier highs.The steady decline in the U.S. dollar has helped push commodity prices higher, while a sharp drop in U.S. crude stocks and OPEC's decision on Wednesday not to increase output also boosted oil prices. While U.S. crude inventories had been building in recent weeks and U.S. gasoline stocks were at 14-year highs, a U.S. government report showed crude stocks fell by 3.1 million barrels last week, against forecasts for an increase.The Organization of Petroleum Exporting Countries, which pumps more than a third of the world's oil, has long argued the current high prices do not reflect market fundamentals and are being driven by speculation.Influential Saudi Oil Minister Ali al-Naimi reiterated that view in remarks published on Friday, saying speculation was behind triple-digit oil and made it impossible for any organization to control price movements."Today there is no link between oil (market) fundamentals and prices," he told Moroccan newspaper Asharq al-Awast."The duty of oil exporters is to make sure that fundamentals are healthy," said Naimi. "If these fundamentals were stable and fulfill market needs, then there is no need to raise or decrease production."OPEC will next meet in September, although ministers could confer informally at a conference between consumers and producers in Rome April 20-22."Leaving things so open-ended gives me and others a clear impression that the cartel is prepared to let prices run away for the time being. Perhaps they feel the weakness in the dollar would offset any rise in price," said Rob Laughlin at MF Global.Tensions between OPEC member Venezuela, a top oil exporter to the United States, and neighbor Colombia, also have underpinned oil prices.(Reporting by Matthew Robinson and Gene Ramos in New York; Margaret Orgill and Santosh Menon in London; Editing by Walter Bagley)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Wall Street stocks gain on optimism for US economy
New York - US stocks rose Wednesday after three separate reports offered signs that the US recovery is gaining steam. Consumer spending and new home sales rose more than expected in October, while weekly jobless claims dropped to their lowest rate si...
Washington Post shutters all US bureaus outside capital - Summary
Washington - The Washington Post will close its remaining domestic bureaus outside the US capital, the paper said Wednesday, in an attempt to cut costs in the prevailing economic climate. The daily said it would close bureaus in New York, Chicago and...
Washington Post shutters its remaining bureaus outside US capital
Washington - The Washington Post will close its remaining bureaus outside the US capital, the paper said Wednesday, in an attempt to cut costs in the prevailing economic climate. The daily said it would close bureaus in New York, Chicago and Los Ange...
FDIC: 'Problem' banks at 16-year high in US
Washington - The number of US banks in danger of collapse has risen to the highest level in 16 years, a government regulator reported Tuesday in a sign that the country's worst financial crisis in decades is still lingering. The Federal Deposit Insur...
American shoppers lace up racing shoes for Black Friday
Los Angeles - Up to 134 million Americans are expected to splash out with their cash when the holiday shopping season kicks off on traditional Black Friday. The National Retail Federation Tuesday said it anticipated that the easing recession will sen...
US stocks edge lower on revised growth figures
New York - US stocks fell slightly on Tuesday as government figures showed that last quarter's economic rebound was smaller than initially thought. The Commerce Department in an updated estimate said the economy grew at an annual rate of 2.8 per cent...
US economic rebound smaller than thought; Fed optimistic - Summary
Washington - The US economy's rebound from a deep recession was smaller than initially thought, according to new government figures Tuesday, while the Federal Reserve said it expects the country's recovery to pick up...
|
|
|
|
|
|
|
|
