Oil prices rise, demand exceeds expectations

Oil prices will continue to grow

In brief: Investors are confident in the continued growth in oil prices until the end of the week. Many traders are beginning to play in the long run.

Oil prices are stabilized against the growth in demand for black gold. Quotes of the oil market on Monday, May 31 closed with a slight increase in price on the background of economic news and data. On the New York Stock Exchange New York Mercantile Exchange price of July futures for petroleum of mark Light Sweet rose by 0.12, or 0.1%, and its price was 74.09 dollars per barrel.

At the exchange InterContinental Exchange Futures Europe in London, Brent crude futures price rose 0.63, or 0.7%, to 74.65 dollars per barrel. On Monday, May 31 quotes on the market of “black gold” closed with a slight increase in the price of the following factors: 1 – Economic News – emerged geopolitical tensions in the Middle East supported the efforts of speculators, the bulls, but their effort and determination was not enough for big growth. Trading in electronic sessions were held listlessly and with low turnover; 2 – seasonal factor – the expectations of good summer season in the United States supported the small investor optimism that prevailed in the market on Monday. In the northwest United States has a high temperature, exceeding by 5-6 degrees Celsius average climatic norm. This will encourage car owners to the use of air conditioners, which will lead to increased fuel consumption. From news is the announcement by the chief adviser of U.S. President on Energy Carol Browner that oil from the damaged wells in the bottom of the Gulf of Mexico, it may be inferred until August. She said U.S. authorities “are preparing for the worst.” For its part, U.S. President Barack Obama called “heartbreaking” message that the last attempt to stop the leak British Petroleum oil again ended in failure. Experts have tried to fill the well cementing solution, but without success. Now engineers BP intend to use other means to stop the oil spill in the ocean. They will try to saw off the damaged section of pipe, from which oil is poured, with the help of a remotely controlled robot, and then install it on the deterrent valve. The new operation should start in 3-4 days. Every day after the accident, which occurred on 20 April and killed 11 people in the Gulf of Mexico water flows around 12 thousand barrels of oil. According to the May 28, the total cost BP at eliminating the consequences of the largest in U.S. history, the oil spill had reached 930 million dollars. The main event of today’s trading session is out of data on oil and oil products from the U.S. Institute of Petroleum. Market participants expect to reduce stockpiles of distillates and gasoline, but at the same time, expect growth of crude oil. Among distillates include heating oil and diesel fuel. Many analysts expect “extremely difficult environment for trade in the future, prices will fluctuate within the area of 70-90 dollars per barrel for a long time in coming months in response to shifts in intraday stock and currency markets, and the situation in the euro zone, possibly will have a secondary effect.

Anrey Torbinski
2010-06-01 10:30, Commodities.

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