Oil price jumps after Bernanke speech
Source: BI-ME with AFP , Author: Posted by BI-ME staff
Posted: Sat August 28, 2010 12:09 pm
INTERNATIONAL. Oil prices soared beyond US$75 per barrel on Friday after US central bank chief Ben Bernanke managed to soothe growth concerns in the world's largest oil-consuming nation.
New York’s main contract, light sweet crude for October delivery, jumped US$1.81 to US$75.17 a barrel, marking a the third straight session of gains.
London’s Brent North Sea crude for delivery in October gained 1.63 cents to US$76.65 per barrel.
In a highly anticipated speech, Bernanke said the sluggish pace of the US economic recovery and employment was weaker than expected by the Federal Reserve.
He nevertheless said prospects for a US growth pick-up in 2011 appeared to ‘‘remain in place’’ despite a sharp cutback in the pace of second quarter economic expansion.
He further said the Federal Reserve will take more ‘‘unconventional’’ steps to boost growth if the economic outlook ‘‘deteriorated significantly’’.
Such measure could include pumping cash into the US economy, which would lower the dollar’s value and make oil a more attractive commodity.
‘‘If they were to act to support the economy, it would maintain a constant level of oil demand,’’ said Lipow.
The US government slashed second quarter growth in the world’s largest economy to a pace of 1.65, signalling a more pronounced slowdown in the recovery from recession.
The Commerce Department said gross domestic product growth in the April-June period fell from 3.7% in the first quarter on the back of a massive trade deficit and weak private inventory investment.
It was sharply lower than the annualised 2.4% projected earlier by the government, but came a shade higher than expected by most economists, who had expected GDP growth to be shaved by nearly half to 1.4%.
Source: BI-ME with AFP , Author: Posted by BI-ME staff
Posted: Sat August 28, 2010 12:09 pm
INTERNATIONAL. Oil prices soared beyond US$75 per barrel on Friday after US central bank chief Ben Bernanke managed to soothe growth concerns in the world's largest oil-consuming nation.
New York’s main contract, light sweet crude for October delivery, jumped US$1.81 to US$75.17 a barrel, marking a the third straight session of gains.
London’s Brent North Sea crude for delivery in October gained 1.63 cents to US$76.65 per barrel.
In a highly anticipated speech, Bernanke said the sluggish pace of the US economic recovery and employment was weaker than expected by the Federal Reserve.
He nevertheless said prospects for a US growth pick-up in 2011 appeared to ‘‘remain in place’’ despite a sharp cutback in the pace of second quarter economic expansion.
He further said the Federal Reserve will take more ‘‘unconventional’’ steps to boost growth if the economic outlook ‘‘deteriorated significantly’’.
Such measure could include pumping cash into the US economy, which would lower the dollar’s value and make oil a more attractive commodity.
‘‘If they were to act to support the economy, it would maintain a constant level of oil demand,’’ said Lipow.
The US government slashed second quarter growth in the world’s largest economy to a pace of 1.65, signalling a more pronounced slowdown in the recovery from recession.
The Commerce Department said gross domestic product growth in the April-June period fell from 3.7% in the first quarter on the back of a massive trade deficit and weak private inventory investment.
It was sharply lower than the annualised 2.4% projected earlier by the government, but came a shade higher than expected by most economists, who had expected GDP growth to be shaved by nearly half to 1.4%.