28-Jul-09 7:00 AM  CST  

Oil higher despite mixed signals on economy 

Oil prices pushed higher again today, as stock markets dipped with mixed signals on the economy.

 

Benchmark crude for September delivery rose 33 cents to settle at $68.38 a barrel on the New York Mercantile Exchange.

Oil has rebounded by almost $10 a barrel this month as stronger economic results from the U.S. and China boosted investor optimism along with better than expected second-quarter earnings results from many companies.

The Dow Jones industrial average has risen about 11 percent in the last 10 days, but was down slightly in today's trading.

The government said today that new U.S. home sales jumped 11 percent in June, the largest amount in nearly nine years.

Sales have risen for three straight months, but the median sales price of $206,200 was down 12 percent from $234,300 a year earlier.

The report initially sent oil — and the stock markets — higher.

But even with growing signs of optimism, demand for oil has remained weak.

“Oil can't stand on its own,” said Phil Flynn of Alaron Trading. “It's looking at what the other markets are doing.”

Peter Beutel of Cameron Hanover said oil also has gotten support from refineries running at levels well below years past.

“That's the only fundamental factor for prices to be higher,” he said.

Prices at the pump moved up 0.8 cents overnight to $2.50 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Prices are now 3.5 cents higher than a week ago, but 14.8 cents below levels of a month ago and $1.47 down from year-ago levels.

In other Nymex trading, gasoline for August delivery rose 1.88 cents to settle at $1.9347 a gallon and heating oil gained 1.53 cents to settle at $1.7966. Natural gas for August delivery fell 9.1 cents to $3.604 per 1,000 cubic feet.

In London, Brent prices rose 49 cents to $70.81 a barrel on the ICE Futures exchange.

 

For additional information on this Industry news article, please contact:

Karl Lassberg
(713) 783-3363

Source: Houston Chronicle
http://www.chron.com

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