WSJ: OIL FUTURES: Crude Tops $96/Bbl As Traders Await Data
By Jerry A. DiColo
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Crude futures moved higher Tuesday in light post-holiday trading, as investors look ahead to key economic data later this week.
Light, sweet crude for August delivery recently traded $1.20, or 1.3%, higher at $96.14 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $1.30 higher at $112.69 a barrel.
Oil prices rose more than 4% last week, and with Tuesday's early gains have more than made up for the sharp drop that followed the decision in late June to release 60 million barrels from global reserves.
Analysts said the market appears to be positioning ahead of monthly U.S. jobs data due Friday and Thursday's European Central Bank meeting. In recent weeks, the oil market has wavered along with traders' hopes for the global economy.
"The pall of summer doldrums may envelop the market this week as participants await the key non-farm payrolls report," said Mike Fitzpatrick, an energy analyst at Kilduff Group, in a note to clients.
The broad economic recovery has raised prices for oil and other commodities in recent months, with demand in China and emerging markets making up for weaker growth in the U.S. and Europe. But economists are worried that disappointing job growth in the U.S. will make it difficult for the economy to continue strengthening, particularly as government stimulus policies wind down.
Meanwhile, oil prices are receiving a boost from strong demand in the auction for crude released from the U.S. Strategic Petroleum Reserve. The U.S. saw an abundance of bids for the 30 million barrels it is supplying to the market in cooperation with the International Energy Agency.
Commodities such as silver, wheat and copper also rose Tuesday, despite a nearly flat equities market and a stronger dollar, which tends to push down commodity prices by making them more expensive in other currencies.
"Oil didn't participate in last week's huge rally," said Rich Ilczyszyn, a broker with Lind-Waldock. "Oil is trying to catch up to the other markets."
Front-month August reformulated gasoline blendstock, or RBOB, recently traded 1.16 cents lower at $2.9610 a gallon. August heating oil recently traded 2.25 cents higher at $2.9470 a gallon.
-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@dowjones.com.
