Oil prices on the rise for second day

26-Aug-10

Crude oil for October delivery mounted to US$72.9 on the Nymex from yesterday’s 72.5. Oil prices are on the rise for the second day in line with a recovery in equities amid investors’ theory that crude prices declined in excess of the outlook for the global economy. The investment appeal of oil received an impetus from a weakening dollar against all but three of its 16 most-traded peers after reports yesterday showed sales of new homes and durable goods orders in the US increased less than forecast, as per Bloomberg. Crude stockpiles rose 4.11 mln barrels to 358.3 mln barrels last week, according to a report from the Energy Department. US gross domestic product increased less than 1.5% in Q2, the slowest rate since the recovery began, according to the median forecast by economists in a Bloomberg survey. Sales of new homes in USA slumped 12% in July to an annual pace of 276,000, the weakest since data began in 1963.