BLBG:Oil Pares Weekly Loss After ECB Says Euro Will Survive
Oil traded little changed in New York, paring this week’s decline after a European Central Bank pledge that the euro will survive reassured investors.
Futures rebounded after ECB President Mario Draghi said the firewalls to protect the single currency are “ready to work much better” than before. Oil has lost 2.6 percent this week. Data yesterday from the U.S. Energy Department showed crude inventories climbed by 2.7 million barrels. Supplies were forecast to decline by 1 million barrels, according to a Bloomberg News survey.
“The never-ending global debt story and unrest in the Middle East will drive prices for the foreseeable future,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark, who correctly predicted crude would recoup today’s earlier losses.
Crude for September delivery was at $89.07 a barrel, up 10 cents, in electronic trading on the New York Mercantile Exchange at 11:42 a.m. London time. It had fallen 90 cents to $88.07 a barrel. The contract yesterday rose 47 cents to $88.97, the highest close since July 20. Prices are 9.9 percent lower this year.
Brent oil for September settlement on the London-based ICE Futures Europe exchange was up 36 cents at $104.74 a barrel. The European benchmark crude was at a $15.64 premium to New York contracts. The spread closed at $15.41 yesterday, the widest in seven weeks.
-- Editors: John Buckley, Rachel Graham
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net
