Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil Rises On U.S. Economic Optimism, Syria Fears

Published 10/02/2015, 07:02 AM
Updated 03/05/2019, 07:15 AM

Oil rose on Friday, pushed higher by fears about escalating violence in Syria and on expectations that data would show economic strength in the United States, the world’s largest oil consumer.

Global benchmark Brent LCOc1 gained 47 cents to $48.16 a barrel by 0324 EDT. The contract had closed the previous session down 68 cents. U.S. crude CLc1 added 74 cents at $45.48 a barrel, after settling 35 cents lower in the previous session.

The oil market was factoring in a risk premium over Syria, where Russia and the United States are conducting bombing campaigns.

West Texas Oil

The situation was complicated by the arrival of hundreds of Iranian troops in Syria to join a ground offensive in support of government forces, a sign the civil war is turning still more regional and global in scope.

Oil drew support from economic optimism ahead of U.S. data that is expected to show the creation of more than 200,000 jobs in September, said Andy Sommer, senior energy analyst at Axpo Trading in Dietikon, Switzerland.

“It’s a sign that the U.S. economy is solid and robust and that demand from the world’s biggest oil consumer can stay on the strong side,” he said.

The nonfarm payrolls data is due at 0730 EDT.

Fears eased over the possibility of disruption to U.S. East Coast oil facilities by Hurricane Joaquin, limiting price gains.

U.S. crude production unexpectedly rose last week despite a drop in active drilling rigs.

Despite the slight gains on Friday, oil is down more than 1 percent this week, after it fell 24 percent last quarter, with few analysts expecting a significant recovery.

“Fundamentals remain weak,” analysts at ANZ said in a note to clients.

“We continue to see weaker fundamentals drive crude oil prices lower in the short term.”
Global FX

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.