May 1 (Bloomberg) -- Crude oil rose to a five-week high as U.S. consumer confidence improved and manufacturing shrank at the slowest pace in seven months, signaling that the recession may end later this year.
Oil gained 4.1 percent after a report showed that confidence in April climbed to its highest level since before the collapse of credit late last year. Factory orders and production are steadying after plunging last year as companies cut stockpiles. Prices were down earlier as U.S. supplies rose to the highest since 1990 and fuel demand dropped.
“Like a lot of markets we are rising on hope,” said Tim Evans, an energy analyst with Citi Futures Perspective in New York. “Some people think that the rise in consumer confidence will result in increased petroleum demand.”
Crude oil for June delivery climbed $2.08 to $53.20 a barrel at 2:55 p.m. on the New York Mercantile Exchange, the highest settlement since March 26. Prices are up 3.2 percent this week and 19 percent this year.
The Reuters/University of Michigan final index of consumer sentiment rose to 65.1, the second straight gain, from 57.3 in March. The index reached a three-decade low of 55.3 in November. The Institute for Supply Management’s factory index increased to 40.1 last month, higher than forecast, from 36.3 in March. Readings less than 50 signal a contraction.
“Traders are looking at poor statistics and looking at them as bullish because they are better than a month ago,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “These moves are unsustainable because the fundamentals of the market are poor.” more...
Tidak ada komentar:
Posting Komentar