378 online
 
Most Popular Choices
Share on Facebook 11 Printer Friendly Page More Sharing Summarizing
General News   

Oil prices rise amid mixed economic data as euro concerns ebb

By       (Page 1 of 1 pages)   No comments

OilGuy
Message James Stafford

OilPrice.com Oil Market Summary for 02/16/2010 to 02/20/2010

An easing of the crisis in Europe gave energy markets a firm tone last week that enabled crude oil futures to gain nearly 8% amid mixed economic news and some concerns about supply.

A strike at French oil refineries lifted prices to a five-week high Friday, with the benchmark West Texas Intermediate finishing the week at $79.81. The French strike threatened to limit U.S. imports of refined products from Europe.

Earlier in the week, the show of solidarity by European Union governments regarding fiscal problems in Greece and other countries in the eurozone, eased concerns about the crisis there and downward pressure on the euro.

A move Thursday by the Federal Reserve to raise the discount rate the rate it charges banks for emergency loans did however propel the dollar higher against the euro. News on Friday that the core inflation rate in the U.S. actually fell 0.1% in January the first decline since 1982 dispelled worries that the Fed would need to tighten further interest rates to combat inflation and led to a lower dollar on Friday.

The weak consumer price index and another weekly increase in jobless claims provided further evidence that U.S. economic recovery continues to be weak.

The weekly report on oil inventories, coming a day late because of the Monday holiday in the U.S., showed increases in crude oil and gasoline stocks but a bigger-than-expected drop in distillates, which includes heating oil. This news buoyed crude oil prices.

A coup in African oil producer Niger on Thursday added to some supply concerns at the end of the week to support higher crude oil prices.

Hedge funds and other speculative traders sharply increased their net long positions in crude oil futures in the week ending Feb. 16, according to trading data from the Commodity Futures Trading Commission, after having reduced them in the previous week.

Andrew Hall, the head of Phibro, is seeking new investors as he reorganizes his hedge fund operations in the wake of Phibro's move from Citigroup to Occidental Petroleum. Hall, who specializes in energy trading, will manage the new Astenbeck Capital Management, named after a town in Germany where he owns a castle. According to the Financial Times, Astenbeck will take over management of two oil funds previously operating under Phibro's aegis.

Hall was the energy trader who created a controversy while still working for Citi because of his $100 million bonus. The bonus was deemed politically unacceptable while the bank was receiving a taxpayer bailout and led to Citi selling Phibro to Oxy Pete.

Source: http://www.oilprice.com/article-oil-prices-rise-amid-mixed-economic-data-as-euro-concerns-ebb.html

By Darrell Delamaide for OilPrice.com

Rate It | View Ratings

James Stafford Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

I have an interest in the financial markets, commodities and Geopolitics.
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Africa's Increasing Importance in Worldwide Energy Security Affairs

The Myth Of Nabucco: Greed, Delusion and $11.4 Billion

Government Insiders: Get Ready for the Gulf Dead Zone

The Great Geopolitical Battle Over Energy Transit Routes

They Died Before the Oil Ran Out

Canada's Oil Sands Set to Become Biggest Source of U.S. Oil Imports, Report Says

To View Comments or Join the Conversation:

Tell A Friend