US crude futures rise $1.95/bbl on post-hoilday buying

05 July 2011 20:36  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for August delivery settled at $96.89/bbl, up $1.95, on Tuesday, as market investors returned from the long holiday weekend.

Despite a stronger dollar, prices received a boost from a forecast by Barclays Capital Bank, which raised its average price for WTI in 2012 to $110.00/bbl and for Brent to $115.00/bbl.

Adding to the upward momentum, a US Commerce Department’s report showed orders for manufactured goods rising in May, suggesting that the economy may be gaining momentum.

The market has been factoring in the Strategic Petroleum Reserve’s (SPR) sale last week of over 30m bbl of oil which were bought by 15 companies at an average price of $107.20/bbl.

August crude surged to $97.48bbl, up $2.54 versus the previous close, before giving back a portion of the gains.

Same month ICE Brent outperformed its American counterpart, surging to $114.44 before settling at $113.61/bbl, up $2.22.

By: Ignacio Sotolongo
+1 713 525 2653

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