Oil rebounds, remains above $95 a barrel - FOX 35 News Orlando

Oil rebounds, remains above $95 a barrel

Posted: Updated:

By PABLO GORONDI

Associated Press

Oil prices staged a moderate rebound Friday, a day after their sharpest drop in more than seven months.

By early afternoon in Europe, benchmark oil for August delivery was up 41 cents to $95.55 a barrel in electronic trading on the New York Mercantile Exchange.

On Thursday, the expiring Nymex contract for July settlement sank $2.84, or 2.9 percent, to $95.40 a barrel. The sharp drop was precipitated by weak Chinese manufacturing data and signals that the U.S. central bank is preparing to scale back its stimulus policies.

Thursday's "events mean that oil shed all of the gains of the past two weeks, showing just how susceptible the oil market is to external influences," said a report from Commerzbank in Frankfurt. "There has after all been no change in the fundamentals since the beginning of the month."

Analysts said rising crude output combined with the Fed's signal that it would start tapering down its asset purchases this year have put downward pressure on oil prices. But Syria's civil war and Iran's pursuit of nuclear projects were risks that had the potential to disrupt energy markets and could cause prices to rise.

"The geopolitical premium must not be forgotten, and may not remain muted for long," said analysts at Credit Agricole CIB in Hong Kong.

On Wednesday, Fed chairman Ben Bernanke suggested that he was optimistic about the U.S. economy -- and that the Fed might start scaling back its massive $85 billion-a-month bond-buying program this year if conditions continue to improve. The Fed could end the program by the middle of next year, Bernanke said.

The Fed program has kept borrowing costs near historic lows for consumers and business. It has also helped boost the equities and energy markets.

Brent crude, a benchmark for many international oil varieties, was up 52 cents to $102.67. Brent plunged $3.97, or 3.7 percent, to end on Thursday at $102.94 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the Nymex:

-- Wholesale gasoline rose 1.57 cents to $2.7932 a gallon.

-- Heating oil added 1.52 cents to $2.8882 per gallon.

-- Natural gas advanced 1.3 cents to $3.89 per 1,000 cubic feet.

------

Pamela Sampson in Bangkok contributed to this report.

  • Your MoneyMore>>

  • Manhattan West Project

    Skyline of West Side is changing

    Skyline of West Side is changing

    Tuesday, July 22 2014 6:25 PM EDT2014-07-22 22:25:22 GMT
    The Manhattan West Project is a $4.5 billion development that will change the skyline on the West Side. The five-acre site that will consist of office towers, a residential building, retail, a 5-star hotel, health and fitness facilities, rooftop gardens, restaurants, cafes, and a park is being built on top of active rail yards. Fox 5 got a look at the progress of the project.
    The Manhattan West Project is a $4.5 billion development that will change the skyline on the West Side. The five-acre site that will consist of office towers, a residential building, retail, a 5-star hotel, health and fitness facilities, rooftop gardens, restaurants, cafes, and a park is being built on top of active rail yards. Fox 5 got a look at the progress of the project.
  • Beach fashion

    Long-sleeved swimsuit is latest beach and pool fashion trend

    Long-sleeved swimsuit is latest beach and pool fashion trend

    Monday, July 21 2014 6:13 PM EDT2014-07-21 22:13:49 GMT
    You have lots of ways to look stylish on the beach, from a bikini to a tankini to a one piece. But the newest trend is long-sleeved swimsuits -- modesty takes precedence over a golden glow. The new beachwear is turning up on sites like ASOS and on luxury sites like Neiman Marcus. There are one piece versions and crop top versions.One of the pioneers of the trend is Dallas-based clothing company Cover.
    You have lots of ways to look stylish on the beach, from a bikini to a tankini to a one piece. But the newest trend is long-sleeved swimsuits -- modesty takes precedence over a golden glow. The new beachwear is turning up on sites like ASOS and on luxury sites like Neiman Marcus. There are one piece versions and crop top versions.One of the pioneers of the trend is Dallas-based clothing company Cover.
  • Wawa to close first store opened 50 years ago

    Wawa to close first store opened 50 years ago

    Monday, July 21 2014 3:01 PM EDT2014-07-21 19:01:43 GMT
    Wawa plans to close the first convenience store opened by the chain in the Philadelphia suburbs a half-century ago.  Susan Bratton, Wawa's regional real estate manager, says the old store is just too small.
    Wawa plans to close the first convenience store opened by the chain in the Philadelphia suburbs a half-century ago.  Susan Bratton, Wawa's regional real estate manager, says the old store is just too small.
Powered by WorldNow

35 Skyline Drive
Lake Mary, FL 32746

Phone: (407) 644-3535
News Tips: (866) 55-FOX35

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices