Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Crude prices rise as U.S. earnings beat expectations

Published 07/12/2013, 12:16 PM
Updated 07/12/2013, 12:17 PM
TTEF
-
WFC
-
LCO
-
CL
-
FISI
-
CCF
-
Investing.com - Crude prices rose on Friday after second-quarter earnings in the U.S. financial sector beat expectations and pointed to an economy that continues to recover and will demand more fuel and energy going forward.

On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded up 0.78% at USD105.73 a barrel on Friday, off from a session high of USD105.85 and up from an earlier session low of USD104.38.

U.S. financial institutions JPMorgan Chase & Co. and Wells Fargo & Co. reported earnings earlier that beat Wall Street expectations, which sent crude prices rising on sentiments U.S. economic recovery continues.

The U.S. is the world's largest consumer of crude oil.

Wells Fargo reported earnings of USD0.98 a share, beating forecasts for USD0.93 a share, due in part to a stronger housing market, which drew applause in energy markets.

JPMorgan reported earnings of USD1.60 a share, well above consensus forecasts for USD1.44 a share.

Healthy supply data kept prices up as well.

The Energy Information Administration reported earlier this week that U.S. crude oil inventories fell by 9.9 million barrels in the week ended July 5, blowing past expectations for a decline of 3.3 million barrels.

The report also showed that total motor gasoline inventories decreased by 2.6 million barrels, confounding expectations for an increase of 1.2 million barrels.

Elsewhere, Federal Reserve Chairman Ben Bernanke said earlier this week that stimulus programs will stay in place for the foreseeable future, which gave crude support.

Stimulus tools such as the Fed's monthly USD85 billion bond-buying program weaken the greenback to spur recovery, which makes oil an attractive asset on dollar-denominated exchanges.

On the ICE Futures Exchange, Brent oil futures for August delivery were up 0.83% at USD108.63 a barrel, up USD2.90 from its U.S. counterpart.









Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.