Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Oil hovers above $71 amid weak demand, US dollar

Send a link to a friend

[September 23, 2009]  SINGAPORE (AP) -- Oil prices hovered above $71 a barrel Wednesday in Asia as signs of weak crude demand were offset by a slumping U.S. dollar.

Benchmark crude for November delivery was down 6 cents at $71.70 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract added $1.83 a barrel to settle at $71.76 on Tuesday.

Oil prices have traded between $65 and $75 for months as consumer demand in the U.S. has remained tepid despite evidence of an economic recovery.

U.S. oil inventories rose unexpectedly last week, the American Petroleum Institute said late Tuesday. Crude stocks increased 276,000 barrels while analysts had expected a drop of 2.25 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

"The reason oil is trading in this range is this battle between weak supply fundamentals and optimism for economic recovery," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore.

"This seems to be a level that both producers and consumers are happy with."

A weakening U.S. dollar has helped support oil prices. The euro rose Wednesday in Asian trading to $1.4817 from $1.4788 the previous day while the dollar fell to 90.68 yen from 91.15.

In other Nymex trading, gasoline for October delivery was steady at $1.77 a gallon, and heating oil held at $1.81 a gallon. Natural gas was up 3.2 cents to $3.64 per 1,000 cubic feet.

In London, Brent crude fell 13 cents to $70.40 on the ICE Futures exchange.

[Associated Press; By ALEX KENNEDY]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


< Recent articles

Back to top


News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law & Courts | Leisure Time | Spiritual Life | Health & Fitness | Teen Scene
Calendar | Letters to the Editor