Oil prices reach six-month high
Saturday, May 30, 2009
Oil prices attained a six-month high on Friday, on new signs that the U.S. economy may not be contracting as fast as was believed.
U.S. crude oil prices reached US$66.47 a barrel, a level not seen since last November. Brent North Sea crude oil was up $1.13 to $65.52 at the end of the week, after peaking at $65.70, also the highest level since November.
This comes soon after a report released by the U.S. Commerce Department showed that the U.S. GDP fell by 5.7%, revised from the original figure of 6.1%.
"Oil market participants' conclusion that the worst of the recession has passed and that a recovery in demand must be at hand was bolstered overnight by higher than expected first quarter growth in India and a sharp jump in Japan's April industrial production," said MF Globa's John Kilduff.
"We've got a lot more optimism about the economic outlook than we did. The market is factoring in a recovery in demand by the end of the year," said an analyst for the Commodity Warrants Australia, Toby Hassall.
- Agence France-Presse. "Improved outlook pushes oil above $66" — , May 30, 2009
- "Oil prices continue rally to $66" — , May 29, 2009