Oil price rises on stimulus hopes

[Omaha Steve]

Source: AP-Excite

BANGKOK (AP) - Oil rose to near $89 a barrel Tuesday in Asia amid hopes China and the U.S. will take new steps to bolster their economies.

Benchmark crude was up 18 cents at $88.61 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose $1.33 to end at $88.43 in New York on Monday. Brent crude was up 11 cents at $103.48 on the ICE futures exchange in London.

Oil's rise was driven by expectations that U.S. and China will do more to prop up slowing economic growth. The two countries are the world's biggest and second-biggest crude consumers. As consumers spend more and the economy strengthens, demand for oil is likely to rise.

Some analysts believe Federal Reserve Chairman Ben Bernanke will talk about additional stimulus when addresses Congress on Tuesday and Wednesday.

FULL story at link.


Read more: http://apnews.excite.com/article/20120717/DA02F1GO3.html

[Kelvin Mace]

1. Because nothing helps bolster an economy

like higher energy prices.

[Smilo]

2. I still want to know why when oil is still below

$90 a gallon we are paying the price at the pump as if it were $110+ a barrel?

[NickB79]

4. Because oil IS close to $110/barrel

The price commonly quoted in the US press is benchmark US crude. However, the global crude oil market watches the European benchmark (or Brent crude) numbers much more than the US standard. And right now, Brent crude is trading at $104/barrel. In fact, for the past year Brent has been a good $20/barrel higher than US standard, which explains why gas prices seem higher than they should be given the price of crude.

[MindMover]

3. Oil prices will be in the $60 barrel price by November ...

gasoline at $2.50 gallon ....