Alexa
  • Directory of Taiwan

Crude oil futures rise $2.92 to settle at $94.09 a barrel

Crude oil futures rise $2.92 to settle at $94.09 a barrel

Oil futures rebounded Wednesday after a sharp decline the previous session as investors started questioning whether OPEC will increase production.
Light, sweet crude for December delivery rose $2.92 to settle at $94.09 a barrel on the New York Mercantile Exchange after a $3.45 drop Tuesday
Prices rose after OPEC Secretary General Abdalla Salem el-Badri said there is no need for the Organization of Petroleum Exporting Countries to add more oil to the market, according to Dow Jones Newswires.
Oil prices fell earlier this week in part due to comments from Saudi Arabia's oil minister suggesting that the cartel will discuss raising production at a meeting next month.
"The market is rebounding after yesterday's option-related sell-off," Tom Bentz, an analyst at brokerage BNP Paribas Commodity Futures in New York, told Dow Jones Newswires. "Speculative buyers appear to be returning."
Meanwhile, the dollar slipped on Wednesday, driving investors back to crude futures. Oil futures offer a hedge against a weak dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the U.S. currency is falling.
Investors were also encouraged by a Labor Department report that inflation at the wholesale level rose only 0.1 percent in October. That increase reignited hopes that the Federal Reserve could cut interest rates again soon, said John Kilduff, vice president of risk management at MF Global UK Ltd. That could pull the dollar lower again.
"The levers that had been working to get oil prices up are back in operation this morning," Kilduff said.
Other petroleum futures also rose Wednesday. December gasoline jumped 5.37 cents to settle at $2.3704 a gallon on the Nymex, while heating oil for December delivery added 7.13 cents to settle at $2.5734 a gallon.
Nymex natural gas for December fell 11.4 cents to settle at $7.835 per 1,000 cubic feet after AccuWeather Inc. predicted this winter will be one of the warmest on record.
In London, December Brent crude futures rose $2.53 to settle at $91.36 a barrel on the ICE Futures exchange.
Expectations that oil inventories fell last week also supported prices. The Energy Information Administration's weekly inventory report, delayed until Thursday this week due to Monday's Veteran's Day holiday, is expected to show that crude oil supplies fell by 300,000 barrels last week, according to the average estimate of analysts polled by Dow Jones Newswires. Gasoline inventories, on average, likely fell 100,000 barrels, while distillate stocks were expected to fall 300,000 barrels. Refinery use likely rose 0.7 percentage point to 86.9 percent of capacity.