Strong U.S. economic growth data takes prices up
Crude-oil futures rose on Tuesday, 23 December 2014 at Nymex getting an extra lift from strong U.S. economic growth and after some Arab members of the Organization of the Petroleum Exporting Countries said they see a rebound to $70 to $80 a barrel next year.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February settled up $1.86, or 3.4%, at $57.12 a barrel. Oil prices have fallen about 45% since June.
Markets have been fumbling around for a price floor, especially after OPEC refused to cut output to stem the decline in prices. Prices took another hit on Monday after weekend comments from some cartel members who said they'd stick to production levels even if oil prices fall much harder.
OPEC producers have been reported as saying they expect global oil prices to rebound to between $70 and $80 a barrel by the end of next year, underpinned by a global economic recovery.
On Tuesday, the dollar climbed on the back of data showing the U.S. economy expanded by the fastest pace in 11 years in the third quarter. The gross domestic product grew by 5%, up from a prior reading of 3.9% and an initial estimate of 3.5%.
The Federal Reserve has said it's watching data closely to determine when to hike interest rates for the first time, so solid economic readings like the GDP data today could raise speculation the central bank will introduce a rate rise next year. Higher interest rates are expected to support the dollar.
Among other energy products, Nymex reformulated gasoline blendstock for January — the benchmark gasoline contract — rose nearly 4 cents, or 2.3%, to $1.57 a gallon. Heating oil for January rose 4 cents, or 2%, to settle at $1.99 a gallon.
Natural gas for the same month gained nearly 3 cents, or 0.9%, to settle at $3.17 per million British thermal unit.
