Oil prices edged higher on Monday, after a choppy session, despite the stronger dollar and as US stocks closed lower, as nerves over Europe outweighed a better-than-expected rise in existing home sales. Crude for July delivery, the most active contract, rose 17 cents to $70.21 a barrel on the New York Mercantile Exchange.
Oil prices for the most part tracked moves on Wall Street, which was dominated by worries over economic instability in Europe. Oil traders fear that Europe’s debt crisis will put the recovery there and elsewhere in jeopardy and therefore reduce demand for fuel.
With persistent concern about Europe, traders have been turning to traditional safe haven investments such as the dollar and gold and Monday was no exception. Demand for oil is expected to remain under pressure later this week as traders eye another build in crude stockpiles. Government data is due out Wednesday.
Gold bugs were busy on Monday following last week’s slide. Gold futures dropped over $50 an ounce last week.COMEX gold for July delivery rose $17.90 to settle at $1,194.70 an ounce the New York Mercantile Exchange.
Uncertainty over Europe’s economic stability and last week's sharp fall fuelled demand for gold and other precious metals. Silver for July delivery rose 35 cents to $18 an ounce while copper for July delivery was up 9 cents at $3.1410 a pound.
No comments:
Post a Comment