Last update: 08-Dec-2013 4:55 am
Sunday, December 08, 2013
Trinidad & Tobago Guardian Online
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Oil hovers above US$97
The price of oil hovered above US$97 a barrel yesterday, consolidating mild gains after two weeks of losses sparked by high supplies and patchy global economic growth. By early afternoon in Europe, benchmark US crude for December delivery was up 30 cents at US$97.41 a barrel in electronic trading on the New York Mercantile Exchange. The contract, which rose 25 cents to US$97.11 on Thursday, is down nearly five per cent over the past two weeks.
One factor weighing on the price was Wednesday’s report from the Energy Information Administration that said US oil inventories rose by 5.2 million barrels last week, a possible symptom of subdued demand and overproduction. The rise in stockpiles followed a four million barrel increase in the previous week. Commodity markets were weighed down also by concerns over the durability of recoveries in key markets such as Japan and China.
Japan released inflation figures that gave a mixed signal about the effectiveness of Prime Minister Shinzo Abe’s economic revitalisation strategy that aims to reverse two decades of stagnation and falling prices. In China, there are jitters that tighter central bank management of credit growth could crimp the recovery in the world’s No two economy. Brent crude, a benchmark for international crude also used by US refineries, was down eight cents at US$106.91 a barrel on the ICE Futures exchange in London.
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