Oil prices rose on Wednesday 24th August 2011. Benchmark West Texas crude rose 75 cents to $86.19 per barrel in New York, while Brent crude was up $1.34 at $110.65 per barrel in London.
The Government reported that orders for long lasting, durable goods like autos and aircraft increased 4% in July, the biggest increase since March this report increased the price. Another reason for increase in a price is the nation’s oil supplies dropped by 2.2 millions barrel by last week.
SEB Commodity Research said that, oil prices could drop temporarily if the crisis in the oil-rich North African nation eases or if strongman Muammar Gadaffi is caught. “Markets have really held back their gains today”. Price initially shot higher on Wednesday after the release of data showing US durable goods orders. Oil and gas companies have successfully diversified their upstream business line. According to Edinburgh based Wood Mackenzie released on Monday, unconventional oil and gas, liquefied natural gas, and deep water oil and gas now make up about 50% of the future value of the international energy giants, which is a Whopping $3.2 trillion.
As oil price is falling in New York the price pf dollar is increasing and the gold plunged the most in more than three years. Goldman Sachs analyst believe that the oil prices will rise in the next year, they told that the risk of US recession has risen, but their revised US economic outlook remain consistent with a recovery at a slower pace, “which is typical following a housing bust.”
After seeing oil prices, investors must grapple with political protests in the world’s top oil exporter, Saudi Arabia, and the impact of the biggest earthquake on record to strike Japan. In coming week, crude market will be looking for clearer information on the condition of the Libyan oil and gas infrastructure says Sanjeev Gupta.
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