Date: Tuesday 27 Jul 2010
Oil prices settled flat on Monday, weaving in and out of positive and negative territory as buying spurred by better than expected home sales data and strong corporate figures ran out steam. Mixed forecasts about upcoming inventory data stifled appetite for oil.Crude for September delivery was unchanged at $78.98 a barrel on the New York Mercantile Exchange. Prices failed to reach the $80 a barrel barrier as investors monitor the uncertain global economic outlook.
Data from the Commerce Department showed new US home sales rose faster than expected in June. Analysts expected a sales increase of 310,000 last month but figures showed a rise of 330,000, perhaps an indication that the worst might be over for the US housing market.
FedEx also gave the market a boost as it raised its first quarter and full year profit forecast.
Looking ahead The American Petroleum Institute publishes its weekly inventories data on Tuesday while the more widely watched government report is out Wednesday. Analysts expect a decline in crude supplies and an increase in gasoline and distillates.
The rise in US house sales wiped the shine off gold on Monday. Comex gold for August delivery fell $4.70 to $1,183.10 an ounce on the New York Mercantile Exchange.
Platinum for October rose $13 to $1,555.80 an ounce while September copper advanced 4 cents to $3.22 a pound.
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