Crude Oil Is Above $70 as Traders Eye Mixed Economic Signs

Crude Oil prices held above US$70 bbl today in Asia as investors considered mixed signs about the strength of the US economy and Crude Oil demand. Benchmark crude for August delivery added 39 cents to US$70.62 bbl by midday Singapore time in electronic trading on the New York Mercantile Exchange. On Thursday, it gained $1.56 to settle at US$70.23 bbl. Crude Oil was bolstered by fears another attack by Nigerian militants on the West African country’s oil installations could crimp supplies. “We still have a long way to go before we’re out of the current recession,” said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. “Supply and demand fundamentals have to come back into play.” Moltke-Leth said the Crude Oil price will likely rise to US$75 a barrel before drifting to near US$60 by the end of the year as investors become disillusioned by a sluggish economic recovery

Investors in the USA were cheered Thursday by better than expected earnings reports from homebuilder Lennar Corp. (LEN) and home furnisher Bed Bath & Beyond Inc. (BBBY). Lennar and Bed Bath & Beyond are covered in today’s Red Roadmaster Stock Talk.

The Dow Jones industrial average jumped 2.1%, and most stock indexes in Asia rose in early trading Friday.

Comments

[The Greates...:]

Does anyone find it rather odd that Americans do not hear so much as a peep out of our Congress as oil and gas prices are set to push America and the rest of the world into and beyond another Great Depression? I find it shocking to see the steady rise at the pump, even as 450,000 jobs a month are being lost here in America. Estimated job lost in the last year is around 10,000,000. Is Congress to far detached that they just don’t see or is it that they really do not care? I guess when you consider that 85 % of our Congress are millionaires, they just don’t look at the economy through the same eyes as the average American. I would urge every American to call, write, email and fax your representative ASAP.

Jun 27 09:49 AM

[The Greates...:]

It is not about supply and demand anymore, it is about control of the market that supplies the product.

Jun 27 09:51 AM

[Ferdinand E...:]

"Supply and demand fundamentals" is a tricky expression. The most important component of fundamentals is the supply policy of OPEC. In other words, you must read the last few chapters in your economics textbook in order to obtain the most important part of the supply and demand message.

Jun 27 09:55 AM

[galewhitaker:]

All oil producers are lying about their proven reserves. The truth would cause stock prices to drop and influence to wane. Americans are constantly inundated by lies about the future supply of energy. Oil sands, oil shale, ethanol, hydrogen, algae, sun, wind, geothermal, cow manure and ocean waves are a few of the red herrings that are lulling folks into complacency. The truth is there is no alternative to light sweet crude and there never will be. All major oil fields are in decline and no major fields have been discovered since the 80s. Politicians cannot be elected if they talk about an impending energy crisis and the chaos the might ensue. We will continue to bury our heads in the sand until we drive into that service station and the sign on the pump says “Out of Gas”.

Jun 27 05:36 PM

[The Aft Deck:]

Oil may see $75 this week

Jun 28 11:20 AM