Crude oil fluctuated after a government report that the U.S. economy in the fourth quarter of 2009 rose less than analysts forecast and the dollar weakened, increasing the investment appeal of commodities. Oil traded within a range of $1.87 a barrel as the Commerce Department reported gross domestic product expanded at a 5.6 percent annual rate, less than the median estimate of 5.9 percent by analysts in a Bloomberg News survey. The dollar dropped as much as 1.1 percent against the euro.
“Since the GDP number came out, the market has struggled a bit” because it didn’t meet the consensus, said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. Crude oil for May delivery dropped 14 cents to $80.39 a barrel at 10:26 a.m. on the New York Mercantile Exchange. Futures have increased 48 percent from a year earlier. Oil declined 0.7 percent this week.
The dollar fell for the first time in four days versus the euro after European Central Bank President Jean-Claude Trichet toned down his opposition to the International Monetary Fund’s involvement in a Greek rescue plan. The U.S. currency dropped 1 percent to $1.3407 from a 10 month high of $1.3273 yesterday.
“People are watching the dollar as they await clear direction from inventory numbers,” Michael Lynch, president of Strategic Energy & Economic Research, in Winchester, Massachusetts. Brent crude oil for May settlement rose 14 cents to $79.75 a barrel on the London based ICE Futures Europe exchange.....Read the entire article.
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1 comment:
Crude oil prices will stay low for a while.
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