News Column

Crude Oil Ends At 3-Month High On Demand Outlook

June 9, 2014

WASHINGTON (Alliance News) - US crude oil surged to end at a more than three-month high on Monday, amid some significant signs of an economic recovery in the US after data last week showed the economy to have added more jobs than expected in May.

Crude oil also found support with some upbeat data in the last fortnight from the European Central Bank, China, and Japan, which further improved the demand growth outlook for oil.

Last Friday, a relatively upbeat jobs report from the US Labor Department showed unemployment stable at 6.3% as the economy generated 217,000 jobs in May.

Investors also await the outcome of the OPEC meeting, which reports indicate will probably maintain its production target at 30 million barrels a day at a meeting in Vienna on Wednesday. Meanwhile, bilateral talks between OAO Gazprom and NAK Naftogaz Ukrainy over Ukraine's gas debts are slated to begin later today in Brussels.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, jumped USD1.75 or 1.7% to close at USD104.41 a barrel on the New York Mercantile Exchange Monday.

Crude prices for July delivery scaled a high of USD104.47 a barrel intraday and a low of USD102.62.

The dollar index, which tracks the US unit against six major currencies, traded at 80.66 on Monday, up from its previous close of 80.43 late Friday in North American trade. The dollar scaled a high of 80.69 intraday and a low of 80.30.

The euro traded lower against the dollar at USD1.3589 on Monday, as compared to its previous close of USD1.3644 late Friday in North American trade. The euro scaled a high of USD1.3670 intraday and a low of USD1.3584.

In economic news, confidence among Japan households improved more-than-expected in May, a monthly survey data from Cabinet Office showed Monday. Japan's consumer confidence index rose to a seasonally adjusted 39.3 in May from 37.0 in April, well above the forecast of 37.6.

US weekly unemployment claims, consumer sentiment and retail-sales results are on tap for later in the week.

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Source: Alliance News

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