Oil above $51, gains trimmed by dollar rise

An experienced guide to the world of finance
providing tools and information that help make
best financial decisions

		My FinanceGates.com		Register

Home

Reviews |

Reviews

News & Commentary

News

Reviews

Columnist Articles

RSS News

Economy

Economic Charts

Financial Calendars

Banking & Loans

Loan Rates

Deposit Rates

Rate Alert

Banking Top Rating

Education

Banking

Investing

Stock Brokerage

Dictionary

Financial Directory

Banking

Funds

Insurance

Stock Brokerage

Billing

My FinanceGates

MLS Canada

Reviews

Columnist Reviews

Friday May 27, 08:09

Oil above $51, gains trimmed by dollar rise

(by Elena Podshuvejt)

Send link to friend

Oil above $51, gains trimmed by dollar rise

Oil jumped above $51 a barrel on Friday regaining losses after the U.S. government report showed a decline in the nation’s stockpiles. The rally began on the news that the US crude stocks declined in the past weeks, against expectations of another buildup. The rally was stopped by the flight of speculative funds out of commodity market and into currency markets.

The Energy Information Administration reported on Wednesday that crude oil inventories lost1.6 million barrels in the past week at the time when most analysts predicted a rise. The report mentioned that it is the second drop in the past 15 weeks. The decline could trigger a rally in oil prices despite high inventory levels. In the meantime, gasoline stocks added 600,000 barrels reaching 215.4 million barrels.

The dollar posted a new seven-month record against the European currency contributing to the incentive for speculators to take their funds out of the oil market and move them into dollar assets. This movement helped trim oil gains, combined with the speculation that US stocks are still well above year-ago levels.

"The strong U.S. dollar will prompt funds to move from the oil market to the currency market," said Tetsu Emori, a chief strategist at Mitsui Bussan Futures.

OPEC member Venezuela’s President Hugo Chavez said on Thursday he believed that a price has to be around $40 a barrel for oil exports.

"It’s a fair price and all the member countries of OPEC think the same," he said.

All reviews

Read the related news and articles:
26 May 2005 07:13 AM	Oil shoots up on weak US inventory report
25 May 2005 09:28 AM	Oil around two-week peak on shutdown of Texas refinery
24 May 2005 08:45 AM	Oil around same level as refineries step up output
23 May 2005 10:40 AM	Oil prices down on rising US inventories and French refineries resuming production
20 May 2005 09:21 AM	Oil up as OPEC contemplates drop in output

SUBSCRIPTION

Join FinanceGates.com mailing list and get news and financial advices on home finance, auto finance, insurances, funds, online payments and much more.

Copyright © FinanceGates.com - independent financial advice and personal finance advice, an InternetGates.com company, 2003-2010. All rights reserved.
Finance Gates provides personal finance advice on banking, insurance, investing and billing.
Reading materials of this site you can be sure that you get independent financial advice.