News / Economy

Oil Rises Above $109 on Demand Outlook, Supply Cuts

Woman walks past electronic board showing Hong Kong share index, July 3, 2013.
Woman walks past electronic board showing Hong Kong share index, July 3, 2013.
Reuters
Oil rose more than $1 to above $109 a barrel on Thursday as upbeat economic data from China and Europe pointed to a stronger demand outlook and unrest in Libya and Iraq disrupted supplies.
 
China's official purchasing manager's index came in higher than expected on Thursday and a survey showed euro zone manufacturing returned to growth in July, suggesting the region may pull out of recession this quarter.
 
Brent crude gained $1.18 to $108.88 a barrel by 1350 GMT and hit $109.45 intra-day, the highest since July 16. It ended July with the largest monthly percentage gain since August 2012. U.S. crude outpaced Brent, adding $2.43 to $107.46.
 
“The main reason is better-than-expected data from China and also the fact that the Fed did not give any hint about ceasing stimulus,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
 
The U.S. central bank on Wednesday said the economy continued to recover but was still in need of support, offering no sign it is planning to curb its bond buying at its next meeting in September. That stimulus has broadly underpinned commodity prices.
 
Further brightening the U.S. economic outlook, the number of Americans filing new claims for unemployment benefits fell unexpectedly last week, the Labor Department said, offering hope the government's comprehensive employment report on Friday could also indicate healthy job gains.
 
Concern over supplies from Libya, Iraq and Nigeria is also underpinning prices. The disruptions helped trim OPEC output to a four-month low in July, according to a Reuters survey published on Wednesday.
 
In Libya, protests at oilfields and terminals cut average supply to 1.15 million bpd in July, according to the survey, down 150,000 bpd from June. Libya's oil minister said output had fallen 330,000 bpd from 1.4 million bpd on Monday.
 
Iraq's production has also come under downward pressure as Sunni insurgents are targeting its northern pipeline, while technical problems are curbing output in the south.
 
Europe's biggest oil company, Royal Dutch Shell, said on Thursday a surge in oil theft in Nigeria contributed to lower second-quarter profit, while Italy's Eni cut its production target and highlighted Nigerian outages.
 
Lending further support, oil inventories at the Cushing, Oklahoma, delivery point for the U.S. crude contract fell for a fifth straight week, government data showed on Wednesday, although overall stocks increased.

You May Like

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Battle With Islamic State Militants Carries Domestic Risks

Despite Western concerns that IS militants are preparing a Jordanian offensive, analysts call the kingdom's solid intel a strong deterrent More

Asian-Americans Assume Office in Record Numbers

Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

This forum has been closed.
Comment Sorting
Comments
     
by: Yoshi from: Sapporo
August 05, 2013 5:21 AM
Oil price continues rising in Japan, too. This news says It would not be only due to the recently weak Yen.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video Comanche Chief Quanah Parker’s Century-Old House Falling Apart

One of the most fascinating people in U.S. history was Quanah Parker, the last chief of the American Indian tribe, the Comanche. He was the son of a Comanche warrior and a white woman who had been captured by the Indians. Parker was a fierce warrior until 1875 when he led his people to Fort Sill, Oklahoma, and took on a new, peaceful life. As VOA’s Greg Flakus reports from Cache, Oklahoma, Quanah’s image remains strong among his people, but part of his heritage is in danger of disappearing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7893
JPY
USD
107.68
GBP
USD
0.6238
CAD
USD
1.1214
INR
USD
61.185

Rates may not be current.