Futures Market News
Price of oil climbs to highest value since October '08
Dec 29, 2010 12:27 PM
Speculation about decreasing stockpiles of crude oil in the U.S. answered worries about a weakening recovery from the economic recession in the globe's top consumer of the commodity, Bloomberg reports. Oil's price rose to its highest value in more than two years.
As U.S. consumer confidence decreased and home values slipped more than economists believed they would, oil futures declined as much as 0.3 percent on Tuesday.
"Jobs are hard to come by and the value of the single largest investment for most consumers continues to decline," according to a Wednesday note from Stephen Schork, president of The Schork Group in Villanova, Pennsylvania. "When you toss in the potential for $100 crude oil in 2011, we wonder why confidence is as high as it is."
The price for February-delivery crude oil rose 0.5 percent on Tuesday, settling at $91.49 per barrel. On Monday, crude's price was $91.88 per barrel, its highest value since October 2008.
"Consumers are clearly still anxious about the future," Peter Beutel, president of energy advisor Cameron Hanover of New Canaan, Connecticut, told Bloomberg. "Expectations had been for an improvement to 56, so the figure was not helpful."
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