Oil prices surge
Oil rose by the biggest percentage in two months yesterday.
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Oil rose by the biggest percentage in two months yesterday.
Reuters reported that weekly data in the United States showed a surprisingly small decline in oil stocks.
Oil topped $US20 a barrel as production problems affected North Sea oil supplies, and traders predicted European governments would release fewer barrels.
In London, ICE Brent crude future August delivery settled at $US118.59 a barrel, gaining $US4.97, or 4.4 percent, their biggest one-day gain since May 9.
U.S. August crude lagged, rising by just $US2.02, or 2.1 percent, to settle at $US98.67, off its session high of $US99.42 -- the highest intraday price since June 15.
Data from payrolls showed private hiring in the US surged in June and the Labor Department reported unemployment benefits fell more than projected last week.
Leading U.S. retailers reported better-than-expected sales for June, further boosting hopes for oil demand.
The European Central Bank's widely expected interest rate hike had little impact on prices, traders said.
Oil prices have rebounded about 10 percent after plunging to four-month lows following the International Energy Agency's shock announcement on June 23 that member nations would release 60 million barrels of oil reserves.
The IEA said it would consider later this month whether or not to release more reserves, but said the program would be short term.
Top investment banks Goldman Sachs, Morgan Stanley, and Barclays Capital have published upbeat forecasts on the outlook for oil fundamentals this week.
NBR staff
Fri, 08 Jul 2011
Fri, 08 Jul 2011
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Oil prices surge
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