New York Mercantile Exchange Archives - Page 2 of 3

Oil Drops Below US$92

September 25, 2012 Webmaster

Worries about weaker economic growth dragged down oil prices Monday.

Oil has now fallen five of the last six trading days. It fell more than six per cent last week.

Benchmark crude fell 96 cents, or one per cent, to finish at US$91.93 a barrel on the New York Mercantile Exchange. Prices for other petroleum products dropped, too.

In London, Brent crude dropped US$1.61 at US$109.81 a barrel on the ICE Futures exchange.

Germany delivered the latest dose of gloomy economic news, with its index of business confidence falling for the fifth month in a row. Germany is an economic powerhouse, but 43 per cent of its exports go to its euro partners. And growth is stalling across the other 16 countries in the Eurozone.

Slower economies mean less demand for oil, pushing prices down.

Phil Flynn, a senior market analyst for Price Futures Group, said he’s surprised prices haven’t fallen further. He said one reason could be that commodity funds have not been bailing out of oil.

demand destruction

Still, oil prices have been under pressure from worries about Europe. The dollar has been stronger, which makes oil cheaper for holders of other currencies.

“You’re seeing demand destruction around the globe,” he said. “You’ve got Saudi Arabia saying they’re going to pump oil until the cows come home.” All of that drives down oil prices, he said.

Heating oil dropped 2.2 cents to US$3.0987 per gallon, wholesale gasolene decreased 2.49 cents to US$2.9176 per gallon and natural gas ended down 4.8 cents to US$2.837 per 1,000 cubic feet.

– AP

Oil declines to 2-week low

September 19, 2012 jrobinson

Oil declined to a two-week low as Saudi Arabia was said to be taking action to lower prices and increasing concern that an economic slowdown will curb demand.

Oil fell for a second day as a Persian Gulf official said Saudi Arabia is pumping about 10 million barrels a day and will produce more if customers demand it.

Prices tumbled 2.4 percent yesterday, at one point dropping 3 dollars in less than a minute on a surge in volume.

At the end of today the price was down 1 dollar 33 cents or 1.4 percent, to 95 dollars 29 cents a barrel on the New York Mercantile Exchange, the lowest settlement since August 30.

The two-day decline was 3.7 percent.

Prices are down 3.6 percent this year.

Oil declines to 2-week low

September 19, 2012 Webmaster

Oil declined to a two-week low as Saudi Arabia was said to be taking action to lower prices and increasing concern that an economic slowdown will curb demand.

Oil fell for a second day as a Persian Gulf official said Saudi Arabia is pumping about 10 million barrels a day and will produce more if customers demand it.

Prices tumbled 2.4 percent yesterday, at one point dropping 3 dollars in less than a minute on a surge in volume.

At the end of today the price was down 1 dollar 33 cents or 1.4 percent, to 95 dollars 29 cents a barrel on the New York Mercantile Exchange, the lowest settlement since August 30.

The two-day decline was 3.7 percent.

Prices are down 3.6 percent this year.

Oil Takes Sudden Plunge

September 18, 2012 jrobinson

Oil plunged suddenly Monday afternoon, dropping more than US$4 per barrel at one point in a dramatic end to an otherwise quiet trading day in New York.

Benchmark crude fell $2.38, or 2.4 per cent, to finish at $96.62 on the New York Mercantile Exchange. That’s the biggest percentage decline since July 23. Oil plunged below $95 per barrel during the sell-off.

Traders were unsure of the cause of Monday’s price drop. Some questioned whether an errant trade or another rumour about a release of oil from the Strategic Petroleum Reserve was to blame.

The White House has been considering tapping the Strategic Petroleum Reserve to stem the rising cost of crude and gasolene. A little over a week ago, Reuters reported the Obama administration was considering a release much larger than the 30 million barrels from last year.

Oil rose 2.7 per cent last week after getting a boost from the US Federal Reserve‘s latest plan to boost the US economy. It held to slight gains above $99 for most of Monday.

Brent crude, which is used to price international varieties of oil, fell sharply as well. Brent lost $2.91, or 2.9 per cent, to $113.77 on the ICE Futures Exchange in London.

– AP

News Oil

Oil price up to near US$97 ahead of ECB meeting

September 4, 2012 jrobinson

(AP) -The price of oil crept up closer to US$97 a barrel today on expectations that the European Central Bank will soon announce new measures to fight the continent’s debt crisis.

By early afternoon in Europe, benchmark crude for October delivery was up 47 cents to US$96.94 per barrel in electronic trading on the New York Mercantile Exchange.

The contract rose US$1.85 to finish at US$96.47 Friday. There was no closing price Monday because of a public holiday in the US.

In London, Brent crude was up $1.72 at $116.29 on the ICE Futures exchange.

The ECB’s governing council is meeting Thursday and ECB President Mario Draghi is expected to reveal a new bond-buying programme aimed at easing borrowing cost for countries like Spain and Italy.

The ECB’s awaited announcement “is likely to prompt speculative financial investors to jump on the bandwagon and drive the (oil) price further upward,” said analysts at Commerzbank in Frankfurt.

“The development of prices and the commitment displayed by investors are at odds with the fundamental data, which continue to suggest an oversupply,” analysts at Commerzbank said. If the central banks fail to live up to expectations, oil prices are likely to drop sharply, they added.

Speculation about the ECB’s stimulus measures has helped support the euro against the dollar. After dropping to near two-year lows near US$1.20 at the end of July, the euro has pushed back to near US$1.26. That pushes up oil prices, which is traded in dollars and becomes cheaper for holders of other currencies when the dollar drops.

Oil analyst Stephen Schork said in a report that oil prices could see “increased volatility this week” due to the loss of a trading day Monday because of a holiday in the US.

The release Friday of US nonfarm payrolls for August, a closely watched gauge of employment in the world’s No 1 economy, also could impact prices, Schork said. He attributed recent swings in the oil price to the conflicting influences of a lower dollar and refinery disruptions in the US Gulf Coast that resulted from Hurricane Isaac.

While a substantial amount of oil and gas production remains offline, production is coming back as expected. No major damage to oil platforms or refineries has been reported.

In other Nymex energy futures trading, heating oil rose 2.53 cents to US$3.2055 a gallon and wholesale gasoline was up 2.31 cents at US$2.9959 a gallon. Natural gas fell 2.8 cents to US$2.771 per 1,000 cubic feet

Oil prices fall as US Gulf Coast storm heads inland

August 30, 2012 jrobinson

BANGKOK, Thailand (AP)

News Oil

Oil prices increase for a 5th straight day

August 20, 2012 jrobinson

Customers are faced with higher fuel prices as oil prices rose for a fifth straight day of

News Oil

Price of oil dips- Jamaicans to benefit at the pumps

June 12, 2012 jrobinson

Jamaicans should see more lower prices at the pumps in coming weeks as the cost of

News Oil

Oil prices hold at lows

May 24, 2012 jrobinson

NEW YORK – The price of oil is holding near seven-month lows following warnings of a “severe recession” in Europe and easing tensions over Iran’s nuclear program.

continuing

Benchmark US crude lost 13 cents to US$92.44 per barrel in morning trading in New York while Brent crude added 27 cents to US$109.08 per barrel in London.

Oil prices have declined almost every day this month as political changes in Greece and France threatened existing plans to fix the eurozone economy. The Organisation for Economic Cooperation and Development says Europe, which consumes 18 per cent of the world’s oil, could fall into recession this year if leaders fail to stimulate the economy

Meanwhile, analysts say Iran‘s oil exports could keep flowing if it lets international inspectors into its nuclear facilities as part of a new deal.

By early afternoon in Europe, benchmark oil for June delivery was down 44 cents to US$92.13 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose US$1.09 to settle at US$92.57 in New York on Monday.

In London, Brent crude for July delivery was up 14 cents at US$108.95 per barrel on the ICE Futures exchange.

Crude has slumped from US$106 earlier this month on fears that global economic growth might slow more than expected this year. In Europe, government austerity measures meant to lower debt have been crippling growth in many large economies like Italy and Spain.

Also hurting energy prices yesterday was a rise in the dollar, which tends to push down oil prices by making crude more expensive for investors trading in other currencies. The euro slipped to US$1.2758 from US$1.2793 late Monday in New York, while the dollar rose to 79.77 yen from 79.36 yen after Fitch lowered Japan’s sovereign debt rating.

Meanwhile, the head of the International Atomic Energy Agency, Yukiya Amano, said Tuesday that Iran had agreed to let IAEA inspectors to resume their investigation into its nuclear program. On Wednesday, talks are set to start in Baghdad between Iran and six world powers about the country’s uranium enrichment efforts and its suspected intent to develop nuclear weapons. Prices had risen in previous months due to international tensions over Iran, which had threatened to block oil shipments out of the Persian Gulf.

Oil Hits Lowest Level In 2012

May 15, 2012 jrobinson

The price of oil fell to its lowest for the year Monday on continued doubts about some European countries’ ability to pay off massive government debts.

Benchmark West Texas Intermediate crude lost $1.35 to end the day at $94.78 per barrel on the New York Mercantile Exchange. That’s the lowest level since December 19.

Brent crude, which helps set the price for oil imported by United States (US) refineries, gave up $1.26 to finish at $111 per barrel in London. Brent was last this low at the end of January.

Oil declined as a leadership crisis in Greece raised doubts that it would comply with a eurozone-supported plan to get out of debt. Analysts see Greece as a test case for whether cash-strapped European nations can slash spending and improve their economies. Europe consumes 18 per cent of the world’s oil.

“You have to ask yourself who’s next after the Greeks,” said Gene McGillian, a broker and oil analyst at Tradition Energy. “What happens if Spain or other countries have similar troubles.”

Oil prices have been declining for most of the past two weeks as European leaders wrestled the debt crisis. The US also reported disappointing jobs growth and China’s manufacturing industry grew at a slower pace.

Boosting supplies

As the world’s economy appeared to slow down, major oil producing nations like Libya, Iraq and Saudi Arabia increased oil production, boosting supplies.

The decline in oil prices has helped make retail gasolene cheaper in the US. The national average fell by less than a penny over the weekend to $3.727 per gallon (98 cents a litre), according to auto club AAA, Wright Express and Oil Price Information Service.

In other futures trading, heating oil gave up 3.41 cents to end at $2.9295 per gallon, while wholesale gasolene lost 4.18 cents to finish at $2.959 per gallon. Natural gas dropped 7.8 cents to finish at $2.431 per 1,000 cubic feet.

http://jamaica-gleaner.com/gleaner/20120515/business/business2.html