Feb.24
U.S. crude oil snapped a two-day loss to end higher Monday, as prices got a boost on rumors of supply thinning out at key delivery points in the U.S., even as the ongoing turmoil in the Middle East threatens to escalate with disruption of supplies from Libya in focus.
Investors remained concerned over the violence in the Middle East with the forced shutdown of a major oil field, the El Sharara, after violence erupted involving hundreds of protestors. The El Sharara oilfield produces an estimated 0.34 million barrels of oil per day. Political developments in Egypt and the violence in Iraq also contributed to the firming oil prices.
Light Sweet Crude Oil futures for April delivery, the most actively traded contract, gained $0.62 or 0.6 percent to close at $102.82 a barrel on the New York Mercantile Exchange Monday.
Crude prices for April delivery scaled a high of $103.45 a barrel intraday and a low of $101.97.
Natural gas for March dropped $0.69 or 11 percent, to close at $5.445 per mBtu on the New York Mercantile Exchange. Natural gas prices have skyrocketed this winter amid one of the coldest seasons in the U.S. in over a decade.
Oil has been up for six consecutive weeks, thanks in part to a weaker dollar and better-than-expected demand from the U.S.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.19 on Monday, down from its previous close of 80.26 late Friday in North American trade. The dollar scaled a high of 80.37 intraday and a low of 80.11.
The euro traded higher against the dollar at $1.3740 on Monday, as compared to its previous close of $1.3735 late Friday in North America. The euro scaled a high of $1.3770 intraday and a low of $1.3710.
In economic news, German business confidence strengthened unexpectedly to its highest level since July 2011 with improvement in the current situation assessment more than offsetting the fall in expectations. The business confidence index climbed to 111.3 in February with the score expected to remain unchanged at January's level of 110.6. This was the fourth consecutive rise in the confidence index.
Consumer prices in the Eurozone increased at a faster pace in January than estimated earlier, but the rate of inflation remained unchanged from the December level, revised data from Eurostat showed Monday. The harmonized index of consumer prices rose 0.8 percent year-on-year in January, which was unchanged from the December growth rate. The preliminary estimates were for a 0.7 percent growth in January.
Elsewhere in Europe, sentiment among U.K.'s service sector firms improved to an all-time high in the three months to February, recording growth for a third successive quarter, data from the Confederation of British Industry showed Monday.
Investor focus this week will be on the U.S. GDP data, as well as durable goods orders and consumer confidence.
Source: http://www.rttnews.com/story.aspx?Id=2274762
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