Oil prices boosted by hopes for the G20 summit

Oil prices never ceases to oscillate at the mercy of wind, carried by the waves that hit pessimistic or optimistic current market ... unless these are not swing the tree hiding the forest of speculation ....  The price per barrel has closed up Friday in New York, spruced this time by the optimism associated with expectations of investors about the positive outcome of the meeting of G20 finance ministers held Friday and Saturday. They hope such a recapitalization of the European banking sector to take place.
Caution is however set as the market speculates on a possible continuation of U.S. demand, while consumer confidence is reduced day by day. The index of consumer confidence, released Friday, has in fact eroded again after showing a slight improvement in September. It now approaches its value in August, when he had touched its highest level since November 2008. Worrying figures that even the strong growth in retail sales in September in the United States could not control.  Yet, according to the Commerce Department, the increase was significant and that the increase was 1.1% compared to last month, well above the value of analysts' projections.
Finally, Friday, a barrel of light sweet crude for November delivery gained 2.57 dollars from Thursday's close, trading at 86.80 dollars on the New York Mercantile Exchange (Nymex).

Oil prices on the increase

Oil-barrel prices rose sharply Wednesday in New York, boosted by the weather and a report from the Fed to say the least optimistic about U.S. growth. The recovery of strength in the stock markets will do the rest. On the New York Mercantile Exchange, a barrel of light sweet crude for October delivery had soared to well over 3.32 dollars Tuesday, up to now the value of 89.34 dollars. Meanwhile in London, the price of Brent North Sea for the same period was trading at 115.80 dollars on the Intercontinental Exchange, rising 2.91 dollars so.

The price of crude rose sharply at the opening as markets react strongly to climatic conditions observed in the Gulf of Mexico, a region where most of the platforms provide a quarter of the oil consumed in the country. Investors have largely responded to the report published by the Office of Management and regulation of ocean energy resources (http://www.cmegroup.com/company/nymex.htmlBOEMRE), the latter indicating that, indeed, if Tropical Storm Lee, who reached Sunday Louisiana had inflicted no major damage, the fact remained that 37% of oil extraction and 18% of gas extraction in the area remained suspended Wednesday.

Although significantly a lower percentages of the values observed the previous day but at a level totally unexpected. Note also a possible disruption of production in Mexico, second largest exporter of crude to the United States while the National Hurricane Center reports that a tropical cyclone could pass within 48 hours, with a probability of 70%.

The price per barrel will also be benefited with the surge in global stock markets observed Wednesday, London and Paris rising more than 3%, while Frankfurt soared more than 4%. Another positive: the report of conditions contained in the Beige Book Federal Reserve (Fed), economic activity in the United States continued to grow at a moderate pace. An ad that has the merit of ending the cycle of bad news experienced in recent times.

Oil Prices On Rise

Oil prices rose sharply Monday in New York, boosted by buoyant equity markets. Wall Street has indeed been boosted during the day by publishing an indicator of consumption in the United States that the current level was satisfactory. On the New York Mercantile Exchange (Nymex), a barrel of "light sweet crude" for delivery in October had concluded the day at 87.27 dollars, up 1.90 dollars from Friday.

Markets remain driven by the president's speech to the U.S. central bank (Fed), Ben Bernanke delivered Friday that may foreshadow the development of new stimulus measures in the monetary policy meeting in September in which the duration was extended. The glow of optimism in the markets is observed following the announcement of a stronger than expected rebound in consumer spending of households, which rose 0.8% in July.

Also note that at present, the impact of Hurricane Irene in oil markets remains weak, no crude oil production being listed in the affected areas and no major disruption in supplies being to report.