Commodity Corner: Crude Soars to 5-Week High
Despite the IEA's forecasts of weaker oil demand, the WTI soared past the $90 mark for the first time in more than a month on Tuesday. Crude gained $2.02 to settle at $90.21 a barrel on the New York Mercantile Exchange. The intraday range for light, sweet crude was $87.81 to $90.52 a barrel.
The Paris-based International Energy Agency cut its global oil demand by 200,000 barrels a day for 2011 and by 400,000 barrels a day for 2012. The IEA said Tuesday that the decrease reflects the weakening global economy. Traders shrugged off growth forecasts after U.S. stocks strengthened and the greenback weakened. Oil, which is priced in dollars, tends to rise as a falling greenback makes crude cheaper for investors holding foreign money.
Meanwhile, Brent crude traded 36 cents lower Tuesday, settling at $111.89 a barrel. Brent prices fluctuated between $111.34 and $112.72.
U.S. natural gas futures rose 9.5 cents Tuesday, or 2.4 percent, to end the trading session at $3.98 per thousand cubic feet. Gasoline for
October delivery advanced less than a penny to settle at $2.74 a gallon. On Tuesday, prices for natural gas traded between $3.87 and
$4.02 per thousand cubic feet and $2.72 and $2.76 a gallon for gasoline.