Oil declined for the first time in four days in New York after Saudi Arabia, the world’s biggest exporter, said the global market has adequate crude supplies.
Futures slipped as much as 1.7 percent after Saudi Arabia’s Oil Minister Ali al-Naimi said yesterday the “market is oversupplied.” Crude fell 2.8 percent last week on speculation price gains spurred by conflicts in the Middle East will curb economic expansion. The world economy is being hurt by “very high” oil prices, said Nobuo Tanaka, the International Energy Agency’s executive director.
“The price recovery may have been delayed by al-Naimi’s comments, but I think the general trend is for the market to move higher,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “Investors are cautiously returning as it becomes apparent that Libyan crude may be unavailable for some time, and as unrest continues in other countries.”
Source: Bloomberg
Crude oil is poised for the biggest monthly advance since October as the U.S. economy starts to recover and fuel inventories fall.
Federal Reserve Chairman Ben S. Bernanke said this week the U.S. economy is in a “nascent” recovery. The U.K. emerged from recession in the fourth quarter at a faster pace than previously estimated, a report today showed. The amount of crude stored in tankers fell to 25 million barrels this month from levels of more than 80 million barrels last year, Poten & Partners said.
“Oil has recovered because of the first signs of economic growth,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “Stocks in floating storage have been diminishing.”
Crude oil for April delivery advanced 28 cents, or 0.4 percent, to $78.45 a barrel in electronic trading on the New York Mercantile Exchange as of 10:52 a.m. in London. A close at that level would mean an increase this month of 7.6 percent.
Bloomberg
Switzerland’s leading KOF economic growth barometer rose to its highest since December 2007 in February, beating analysts’ expectations and confirming views that the economy was on track for a solid recovery.
The barometer increased to 1.87 points in February, the KOF Swiss Economic Institute said, more than the 1.80 reading forecast by analysts ECONCH. January’s reading was revised up to 1.81 from 1.77.
The barometer surged last year, though the monthly increases have slowed recently, indicating that the recovery would likely continue at a slower pace. Switzerland emerged from the worst recession in decades over the summer and several recent indicators have pointed to further recovery, though economists expect joblessness to peak later
this year.
Reuters
