• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 6 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 8 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 5 hours UK, Stay in EU, Says Tusk
  • 15 hours How Is Greenland Dealing With Climate Change?
  • 10 hours Socialists want to exorcise the O&G demon by 2030
  • 12 hours Is Natural Gas Renewable? I say yes it is.
  • 15 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 57 mins Algorithms Taking Over Oil Fields
  • 2 days Maritime Act of 2020 and pending carbon tax effects
  • 30 mins Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 3 days Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 21 hours Saudi Private Jet Industry Stalls After Corruption Crackdown
Alt Text

The Overlooked Factor Driving The Rally In Oil

Oil prices are rising again,…

Alt Text

Is Trump Really Responsible For Lower Oil Prices?

President Trump took credit for…

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Trending Discussions

Tropical Storm Threat Propels Oil Prices to Gain for the Week

Oil Market Summary for 06/21/2010 to 06/25/2010

Crude oil prices surged ahead more than 3% on Friday as the first Atlantic tropical storm of the season began brewing in the Caribbean, raising concerns about disruption of production and refining in the Gulf region.

The benchmark West Texas Intermediate futures contract settled at $78.86 a barrel on Friday, the first close above $78 since early May. Friday’s gain put oil prices ahead just more than 2% for the week, after a closing price of $77.18 a week ago.

Further bullish news came in the forecast from AAA that 35 million U.S. drivers would hit the road over the July 4 holiday weekend, a gain of 17% over last year, though still short of the 38 million drivers during the 2008 holiday.

These short-term demand and supply factors overshadowed some of the negative economic trends that depressed prices earlier in the week.

Oil prices tumbled nearly 2% on Wednesday on the announcement that new-home sales plunged a record 33% in May following the expiration of federal homebuyers’ tax credit in April. The Federal Reserve also weighed in with a gloomy economic assessment after the meeting of the Federal Open Market Committee, which sees continued low interest rates in the face of a sluggish recovery.

Also on Wednesday, oil inventories registered an increase of 2 million barrels, contrary to a consensus forecast of a decline of 1.5 million barrels. Gasoline stocks declined by 800,000 barrels equivalent, but that was perceived as anemic for the season.

However, a weaker dollar gave oil prices some support throughout the week, and futures markets shrugged off Friday’s downward revision in first-quarter U.S. GDP, to a 2.7% annual rate from the initial forecast of 3.2% for the period.

The potential Caribbean storm could develop over the weekend, hurricane forecasters said, and would force evacuation of some production sites if it moved toward the U.S. Gulf coast. It could also interfere with efforts to contain the Deepwater Horizon oil spill.

The dollar was weaker across the board in the run-up to the G20 summit this weekend, including against the Chinese yuan, which gained half a percent against the U.S. currency this week after China announced it was loosening the yuan’s peg to the dollar. The Chinese move defused a possible issue at the summit, as U.S. lawmakers threatened legislative action if China did not act to increase the value of its currency.

By. Darrell Delamaide for OilPrice.com




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News