VIENNA (AP) — Oil prices slipped to near $71 a barrel Friday as the crude market took a breather from its recent daily gains. But the mood remained bullish as investors eyed signs that the global recession may be easing.
Benchmark crude for July delivery fell $1.60 to $71.08 a barrel by afternoon European time in electronic trading on the New York Mercantile Exchange. On Thursday, it rose $1.35 to settle at $72.68, the highest since October.
Reflecting expectations of continued global economic weakness, the Organization of the Petroleum Exporting Countries forecast Friday that demand for its crude this year would average 28.6 million barrels a day — 2.2 million barrels less than in 2008.
Still there are some signs of a turnaround.
On Thursday, the International Energy Agency said in its monthly survey that global oil demand would fall by 2.9 percent this year, slightly better than its May forecast of a 3 percent fall.
It was the organization’s first upward revision to its forecasts in 10 months.
“Oil prices are discounting positive economic growth by around the end of the third quarter,” said Christoffer Molke-Leth, head of sales trading for Saxo Capital Markets in Singapore. “If that doesn’t happen, prices at this level are overbought.”
Prices have more than doubled since March on hopes that the U.S. recession is past its peak.
The Labor Department on Thursday reported that the number of newly laid-off Americans filing for jobless benefits fell last week by 24,000 to 601,000 — better than economists had forecast.
Meanwhile, the Commerce Department said retail sales rose 0.5 percent in May, interrupting two months of decreases and marking the largest gain since January.
In its daily report, Vienna’s JBC Energy spoke of a “swing of positive economic news,” and “bullish news ... from the IEA” as propping up oil prices.
Molke-Leth suggested prices remained on an upward path, despite Friday’s losses.
“I think we’re going for a test of $75,” Molke-Leth said. “Every time you see a little pull back you have funds ready to step in.”
Investors have also bought crude as a hedge against a weakening U.S. dollar and the possibility of inflation down the road. The euro weakened to $1.4046 on Friday from $1.4125 a day earlier.
“Fear of inflation is supporting the whole commodity complex, particularly oil,” Molke-Leth said. “The record fiscal and monetary stimulus will have inflationary implications.”
In other Nymex trading, gasoline for July delivery fell by close to 4 cents to $2.03 a gallon and heating oil dropped by over 2 pennies to $1.82. Natural gas for July delivery slid more than 16 cents to $3.77 per 1,000 cubic feet.
In London, Brent prices fell $1.53 to $70.26 a barrel on the ICE Futures exchange.
————
Associated Press writer Alex Kennedy contributed to this report from Singapore.
Business
<img src=" http://www.joplinglobeonline.com/images/zope/friday.gif" border=0> Oil slips to $71 as investors take profits
- Business
-
-
Obama call for manufacturing revival a tough goal
President Barack Obama is making a strong election-year push for an economic revival “built on American manufacturing.” But he faces an uphill slog, with little consensus even within his own party on how to do it.
-
Stocks fall sharply as Greek deal is held up
Stocks are closing their worst day this year after Greece hit a roadblock on its way to a critical bailout.
-
Budget deficit drops to $27 billion in January
The budget deficit fell sharply in January compared to a year earlier, as an improving economy lifts income tax revenue.
-
Feds slap CA utility for San Onofre ammonia leak
Federal regulators say an ammonia leak that caused an emergency alert at Southern California’s San Onofre nuclear plant was caused by employees who failed to recognize degraded equipment and fix it.
-
Chicago officials make plans for potential massive protests of G-8, NATO summits
In Wisconsin, a group of environmentalists plans to bicycle to Chicago’s G-8 and NATO summits to protest an economy that relies too heavily on fossil fuel.
-
Obama praises Italian leader’s economic efforts
Eager for Europe to contain its economic troubles, President Barack Obama praised Italian Premier Mario Monti on Thursday for his efforts to lead Italy out of its fiscal quagmire.
-
Consortium in South wins federal approval for 2 new nuclear reactors
A consortium of utilities in the South won government approval Thursday to construct two new reactors at an estimated cost of $14 billion, the strongest signal yet that the three-decade hiatus of nuclear plant construction is finally ending.
-
Stocks fall at the open as Greek deal is held up
U.S. stocks opened lower Friday after Greece’s bailout deal was put on hold, a day after it seemed that the country had satisfied its creditors.
-
Asia stocks slip as Greek bailout remains in limbo
Asian stock markets dropped Friday after Europe’s finance ministers demanded more spending cuts from Greece before clearing a (euro) 130 billion ($170 billion) bailout to stave off the country’s bankruptcy.
-
Google’s first employee leaves to join education nonprofit
Google Inc.’s first hired employee, Craig Silverstein, is leaving the tech giant, where he’s worked since its founding, to sign on with the rising education startup Khan Academy.
- More Business Headlines
-
Obama Scraps Birth Control Mandate
US Airmen's Killer Sentenced to Life in Germany
Raw Video: Deadly Blasts in Syria
Romney Slams President Obama at CPAC
Gingrich: Pres. Obama 'waging War on Religion'
Navy Names Ship for Gabrielle Giffords
5 Killed in Wrong-way Crash on I-10 in La.
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
LA School in Sex Abuse Scandal Reopens
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Air Force Airlines: Leaders Get Polished Service
Ga Girl Fights Off Kidnapper at Walmart
Skip the Coffee Cup and Inhale Your Caffeine Fix
