Oil rebounds, remains above $95 a barrel - FOX 10 News | myfoxphoenix.com

Oil rebounds, remains above $95 a barrel

Posted: Updated:

By PABLO GORONDI

Associated Press

Oil prices staged a moderate rebound Friday, a day after their sharpest drop in more than seven months.

By early afternoon in Europe, benchmark oil for August delivery was up 41 cents to $95.55 a barrel in electronic trading on the New York Mercantile Exchange.

On Thursday, the expiring Nymex contract for July settlement sank $2.84, or 2.9 percent, to $95.40 a barrel. The sharp drop was precipitated by weak Chinese manufacturing data and signals that the U.S. central bank is preparing to scale back its stimulus policies.

Thursday's "events mean that oil shed all of the gains of the past two weeks, showing just how susceptible the oil market is to external influences," said a report from Commerzbank in Frankfurt. "There has after all been no change in the fundamentals since the beginning of the month."

Analysts said rising crude output combined with the Fed's signal that it would start tapering down its asset purchases this year have put downward pressure on oil prices. But Syria's civil war and Iran's pursuit of nuclear projects were risks that had the potential to disrupt energy markets and could cause prices to rise.

"The geopolitical premium must not be forgotten, and may not remain muted for long," said analysts at Credit Agricole CIB in Hong Kong.

On Wednesday, Fed chairman Ben Bernanke suggested that he was optimistic about the U.S. economy -- and that the Fed might start scaling back its massive $85 billion-a-month bond-buying program this year if conditions continue to improve. The Fed could end the program by the middle of next year, Bernanke said.

The Fed program has kept borrowing costs near historic lows for consumers and business. It has also helped boost the equities and energy markets.

Brent crude, a benchmark for many international oil varieties, was up 52 cents to $102.67. Brent plunged $3.97, or 3.7 percent, to end on Thursday at $102.94 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the Nymex:

-- Wholesale gasoline rose 1.57 cents to $2.7932 a gallon.

-- Heating oil added 1.52 cents to $2.8882 per gallon.

-- Natural gas advanced 1.3 cents to $3.89 per 1,000 cubic feet.

------

Pamela Sampson in Bangkok contributed to this report.

  • Your MoneyMore>>

  • Getting married? You may want your prenup to protect your 'digital privacy'

    Getting married? You may want your prenup to protect your 'digital privacy'

    Friday, April 18 2014 10:11 PM EDT2014-04-19 02:11:48 GMT
    Realty TV star Kim Kardashian probably wished she did have one before she walked down the aisle with Kris Humphries. We might never have known about Tiger Woods' cheating ways if he had one. And figure skater Johnny Weir is insisting on one as part of his post-nuptial agreement. What is it? A digital privacy clause. New York City divorce lawyer Bettina Hindin says once you push "send" someone can find it.
    Realty TV star Kim Kardashian probably wished she did have one before she walked down the aisle with Kris Humphries. We might never have known about Tiger Woods' cheating ways if he had one. And figure skater Johnny Weir is insisting on one as part of his post-nuptial agreement. What is it? A digital privacy clause. New York City divorce lawyer Bettina Hindin says once you push "send" someone can find it.
  • Grocery-store etiquette

    Grocery-store etiquette

    Friday, April 18 2014 7:24 PM EDT2014-04-18 23:24:07 GMT
    Whether barricading shopping aisles with abandoned carts, massaging every piece of fruit in the building, or blankly staring at a shelf of items so no one else can pick one, grocery store pests can turn a quick trip to restock your fridge into a nightmare.
    Whether barricading shopping aisles with abandoned carts, massaging every piece of fruit in the building, or blankly staring at a shelf of items so no one else can pick one, grocery store pests can turn a quick trip to restock your fridge into a nightmare. In the hope of gently educating those unclear on grocery-shopping etiquette, we asked you to help us put together a list of what not to do.
  • Expert: credit cards are not fully secure

    Expert: credit cards are not fully secure

    Friday, April 18 2014 6:49 PM EDT2014-04-18 22:49:51 GMT
    Another week and another credit card hacking at a major retailer. This time it was Michael's craft store. Consumers are uneasy because current credit card technology is antiquated. "The fact is you cannot protect your credit cards, you can't every time you give it out it is vulnerable to fraud," says Robert Siciliano, McAfee identity theft expert.
    Another week and another credit card hacking at a major retailer. This time it was Michael's craft store. Consumers are uneasy because current credit card technology is antiquated. "The fact is you cannot protect your credit cards, you can't every time you give it out it is vulnerable to fraud," says Robert Siciliano, McAfee identity theft expert.
Powered by WorldNow

KSAZ-TV & KUTP
511 W. Adams St.
Phoenix, AZ 85003

Phone: (602) 257-1234
Fax: (602) 262-0177

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices