Oil Prices Rise over Job Growth and Drop in US Oil Stockpiles

October 07 00:00 2011

New York, October 7 (RainbowNewsLine.com) – Oil prices rose for a second day in New York buoyed by better-than-expected economic data, receding US crude supplies, and indications that Europe can control its debt crisis. These factors indicated that fuel consumption will not suffer.

An Energy Department report showed that crude inventories fell 4.7 million barrels and data from ADP Employer Services indicated that more jobs were added by U.S. companies than predicted last month. Moreover, European officials are drawing out plans to boost bank capital, as reported by an International Monetary Fund official.

On these sentiments, West Texas Intermediate futures rose 1.6 percent after rising the most in almost five months yesterday. Crude for November delivery went up $1.29 to$80.97 a barrel in electronic trading on the New York Mercantile Exchange. Brent Oil for November settlement went up 0.9 percent to $103.64 on the London-based ICE futures Europe Exchange.

Thina Saltvedt, an analyst at Nordea Bank AB in Oslo said “Oil prices have been quite resistant to the turbulence in the US and Europe,” and added that “the latest macro figures have not been as disappointing. It’ll take something worse to bring prices down.” He expects Brent to remain at $100 a barrel for the next few weeks and average $110 this quarter.