Oil settled lower on Friday as traders mulled the results of the European banking stress tests and as concern about Tropical Storm Bonnie faded.
Crude for September delivery closed down 32 cents at $78.98 a barrel on theNew York Mercantile Exchange. The decline follows Thursday 3.6% bounce, the largest single day gain in three months, on hopes that a positive earnings season will bolster demand for energy.
Crude has remained in a tight range between $70 and $80 a barrel for many weeks, tracking Wall Street and any signs of future economic growth. However with so much uncertainty about the direction of the global economy and oil demand analysts predict crude will find it difficult to breach technical resistance at $80 a barrel.
Meanwhile Tropical storm Bonnie was weakened to a tropical depression after it passed over Florida at the weekend. However there was still concern about damage to oil production and refineries in the Gulf and delays to BP’s efforts to permanently plug its broken well.
Gold eased on Friday as investors reacted positively to the European banking stress tests. Gold for August gold delivery fell $7.80 at $1187.80 an ounce in New York.
Crude for September delivery closed down 32 cents at $78.98 a barrel on theNew York Mercantile Exchange. The decline follows Thursday 3.6% bounce, the largest single day gain in three months, on hopes that a positive earnings season will bolster demand for energy.
Crude has remained in a tight range between $70 and $80 a barrel for many weeks, tracking Wall Street and any signs of future economic growth. However with so much uncertainty about the direction of the global economy and oil demand analysts predict crude will find it difficult to breach technical resistance at $80 a barrel.
Meanwhile Tropical storm Bonnie was weakened to a tropical depression after it passed over Florida at the weekend. However there was still concern about damage to oil production and refineries in the Gulf and delays to BP’s efforts to permanently plug its broken well.
Gold eased on Friday as investors reacted positively to the European banking stress tests. Gold for August gold delivery fell $7.80 at $1187.80 an ounce in New York.
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