Oil closed Wednesday at $90.48 a barrel, the highest closing price seen since Oct. 3, 2008
Crude oil settled on the NYMEX on Wednesday at $90.48 a barrel, the highest closing price seen since Oct. 3, 2008. That follows a fourth consecutive day of gains.
Several factors are at the core of recent increases, including news from the Energy Information Administration of a third straight weekly drop in crude oil inventories, cold weather on both sides of the Atlantic, healthy retail performance and stronger performance of the Standard Poor’s 500 Index.
U.S. crude oil inventories fell 5.33 million barrels in the week to Dec. 17, a third straight weekly decline, the U.S., according to the EIA.
Futures increased 0.5 percent after a private report showed same-store sales climbed 4.2 percent last week. Holiday retail sales are a key economic indicator in the U.S., the world’s largest oil-consuming country.
The SP 500 gained 0.6 percent to 1,254.60, a level not seen since the day before Lehman Brothers Holdings Inc. filed the world’s biggest bankruptcy in September 2008, Bloomberg reported.
“Holiday shopping appears to be strong, which is increasing optimism about the economy in the coming year,” said Michael Lynch, president of Strategic Energy Economic Research in Winchester, Massachusetts. “Prices are moving higher on probably premature anticipation of tightness.”
China, the world’s second-largest oil-consuming country, said net oil-product imports almost doubled last month to 1.44 million tons.
“There has been an insatiable appetite from hedge funds and other investors as oil demand picks up,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “But if higher internal fuel prices and monetary tightening slow Chinese growth, and Northern Hemisphere temperatures warm up, the oil market could come off the boil.”
Printer Friendly Version
Email This Story
Fuel and Oil: Related News
12/23/2010 – Crude Closes Above $90 on Stockpile Drop, Cold Weather, Good Job Numbers
Crude oil settled on the NYMEX on Wednesday at $90.48 a barrel, the highest closing price seen since Oct. 3, 2008. That follows a fourth consecutive day of gains….
12/21/2010 – Cold Weather Pushing Fuel Prices Higher Worldwide
Blame the cold for the escalating cost of fuel. It’s cold all over and that’s driving up demand for heating oil….
12/20/2010 – Congress Renews Incentives for Alternative Fuels, But Not For Vehicles
The much publicized tax and unemployment-benefits measure passed by Congress last week also contains tax breaks for use of automotive alternative fuels, but not for the vehicles themselves….
12/14/2010 – Diesel Rises for the Third Straight Week, Up 3.4 cents to $3.231
Diesel prices hit a fresh two-year high on Monday following the release of the weekly Department of Energy’s Weekly Retail On-Highway Diesel Price summary, rising 3.4 cents to $3.231 a gallon….
12/14/2010 – Biodiesel Tax Credit Gets a New Lease on Life
The biodiesel tax incentive moved a step closer to being extended Monday….
12/9/2010 – Clean Energy Signs Agreement to Acquire Northstar, Advanced LNG Technology Leader
Clean Energy Fuels Corp. has entered into a Securities Purchase Agreement to acquire Wyoming Northstar Incorporated and affiliates…
12/8/2010 – DOE Energy Forecast Sees Fuel Prices Climbing to $3.23 per Gallon Next Year
Following a recent spike in crude oil and diesel prices, the U.S. Department of Energy’s current Short-Term Energy Outlook projects that diesel will run at $3.14 per gallon over the winter months (October 1 to March 31), before leveling out at a projected average for the year of $3.23 per gallon….
12/6/2010 – U.S. Passes ULSD Milestone
December 1 marked a major milestone for the nation’s transition to ultra-low sulfur diesel fuel — all on-highway diesel fuel now complies with the landmark 15 parts-per-million sulfur standard. This represents a 97 percent reduction in sulfur content from 2006 levels….
11/30/2010 – Diesel Prices Lower, Oil Futures Higher
The average price of a gallon of diesel dropped for the second week in a row, but only by a less than a penny, according to weekly figures released Monday by the U.S. Department of Energy….
11/23/2010 – Diesel, Oil Prices Drop Slightly
The price of diesel dropped by 1.3 cents in the past week, according to weekly figures from the U.S. Department of Energy….