December 27, 2010
Oil Trades Near 26-Month High on China Growth Speculation, U.S. Stockpiles
Oil fell from a two-year high in New York amid concern that China’s second interest-rate increase since October may slow economic growth in the world’s biggest energy consumer.
Futures snapped a five-day rising streak after the People’s Bank of China boosted benchmark one-year lending and deposit rates by 25 basis points Dec. 25 to tackle the fastest inflation in more than two years. Oil advanced earlier as temperatures fell and storms blanketed the eastern U.S. with snow, raising demand for heating fuels.
The Chinese rate increase “cools the economy and hence oil demand,” said Thorbjoern Bak Jensen, an analyst at Global Risk Management in Middelfart, Denmark. China overtook the U.S. last year as the largest energy user.
read full report here ~ http://www.bloomberg.com/news/2010-12-27/crude-slips-after-reaching-26-month-high-on-china-growth-u-s-stockpiles.html
Oil Trades Near 26-Month High on China Growth Speculation, U.S. Stockpiles
Oil fell from a two-year high in New York amid concern that China’s second interest-rate increase since October may slow economic growth in the world’s biggest energy consumer.
Futures snapped a five-day rising streak after the People’s Bank of China boosted benchmark one-year lending and deposit rates by 25 basis points Dec. 25 to tackle the fastest inflation in more than two years. Oil advanced earlier as temperatures fell and storms blanketed the eastern U.S. with snow, raising demand for heating fuels.
The Chinese rate increase “cools the economy and hence oil demand,” said Thorbjoern Bak Jensen, an analyst at Global Risk Management in Middelfart, Denmark. China overtook the U.S. last year as the largest energy user.
read full report here ~ http://www.bloomberg.com/news/2010-12-27/crude-slips-after-reaching-26-month-high-on-china-growth-u-s-stockpiles.html
