Posts Tagged ‘driver to support high oil prices’

Oil rises above $70 as markets stabilize!

Oil prices

Oil prices rose slightly above $70 a barrel, recovering only some of the losses suffered on Monday, when investors worried about the economic outlook of China while by late afternoon European time in electronic trading on the New York Mercantile Exchange, the standard crude for October delivery was up 18 cents at $70.14 a barrel.

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However, the contract slumped $2.78 on Monday to settle at $69.96 after a drop in stocks heightened investor concerns that the global economic revival may be weaker than anticipated.

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Whereas China’s standard stock index fell 6.7% Monday while the Dow Jones industrial average fell 0.5%.

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Moreover, most Asian stock indexes rose modestly on Tuesday, including China’s.

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Although European markets were down while it is said that stocks are a leading indicator of the economy, so if there is a slump in stocks, that”s one fewer driver to support high oil prices.

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Additionally, oil will likely trade between $65 and $70 during the next few weeks and a big pullback is expected because they are starting to see more signs of economic life.

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However, in other Nymex trading, gasoline for October delivery rose 1.57 cents to $1.83 a gallon and heating oil gained 1.42 to $1.82 a gallon while in London, Brent crude was up 22 cents at $69.87.

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