Oil up to near $78 as weeklong rally continues

Oil prices were up to near $78 a barrel Friday, continuing a weeklong rally amid an unexpected drop in U.S. gasoline inventories.
OCT 16, 2009
By  Bloomberg
Oil prices were up to near $78 a barrel Friday, continuing a weeklong rally amid an unexpected drop in U.S. gasoline inventories. By mid-afternoon in Europe, benchmark crude for November delivery was up 10 cents at $77.68 in electronic trading on the New York Mercantile Exchange. Earlier in the session, it rose as high as $78.17. On Thursday, the contract rose $2.40 to settle at $77.58. The Energy Information Administration said Thursday that U.S. gasoline supplies fell 5.2 million barrels while analysts had expected a jump of 1.6 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Crude supplies rose 400,000 barrels, the EIA said, while analysts had anticipated an 2.2 million barrel gain. Until this week, oil had bounced between $65 and $75 since May. "The transition to a $70 to $80 range is now in full cry," Barclays Capital said in a report. "We expect further transitions upward to occur in line with improvements in the underlying market data." A falling U.S. dollar has also helped boost oil this week. Still, other analysts noted that global demand continued to be frail and warned it would be premature to expect prices to keep rising or even to remain near current levels. "The recent price rise has been very impressive and markets could well test $80, but in our opinion a correction next week is the likely scenario to back below $75 and even to the low $70s given oil fundamentals remain poor, global inventories are still high and demand recovery is far from convincing," said London's Sucden Research. Petromatrix analyst Olivier Jakob concurred, saying he had "no confidence at all in the current oil rally" because of the weak fundamentals. In other Nymex trading, heating oil fell 0.71 cent to $2.0110 a gallon, while gasoline for November delivery slipped 0.95 cent to $1.9354 a gallon. Natural gas for November delivery rose 4.4 cents to $4.526 per 1,000 cubic feet. In London, Brent crude for December delivery fell 20 cents to $76.03 on the ICE Futures. exchange. ___ Associated Press writer Alex Kennedy in Singapore contributed to this report.

Latest News

What does it take to feel ‘financially comfortable’ or ‘wealthy’ in 2025?
What does it take to feel ‘financially comfortable’ or ‘wealthy’ in 2025?

New report shines a light on how Americans view wealth today.

Retirement delays, Social Security fears prompt advisors to rethink income strategies
Retirement delays, Social Security fears prompt advisors to rethink income strategies

Concerns about outliving savings and healthcare costs are reshaping how "Peak 65" Americans and advisors approach income planning.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut
RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut

Modern Wealth's latest deal for a California-based fee-only RIA marks its fourth acquisition of 2025.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.