NEW YORK (Dow Jones)--The main U.S. oil contract breached $110 a barrel for the first time in 2 1/2 years Thursday, lifted by fighting in Libya and signs of an economic recovery in the U.S.
Light, sweet crude for May delivery settled up $1.47, or 1.4%, at $110.30 a barrel on the New York Mercantile Exchange, the highest settlement since September 2008. Brent crude on the ICE futures exchange recently traded up 39 cents, or 0.3%, at $122.69 a barrel.
Traders pointed to reports of damage to an oil field in Libya as a main driver behind this session's rally. The North Atlantic Treaty Organization said skirmishes between rebels and forces loyal to Libyan leader Moammar Gadhafi led to "at least one fire at an oil facility in the region of Sarir," according to Agence France Presse.
"It seems sketchy," said Andy Lebow, senior vice president at brokerage MF Global in New York, of the report. "But with crude relatively tight in the market, that's just going to add more anxiety."
Several traders added that the Nymex contract also breached technical levels around midday that, once hit, triggered a wave of buying that propelled prices to $110 a barrel.
Thursday, April 7, 2011
OIL FUTURES: Oil Tops $110 On Libya Fighting, Jobless Report - WSJ.com
via online.wsj.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment