Commodity Corner: Euro-Zone Woes Eased, Oil Up
Light, sweet crude reversed yesterday's losses after the European Central Bank announced it would provide liquidity to Euorpean banks. The European Central Bank, along with other major central banks, will reestablish three-month dollar liquidity operations in the fourth quarter. Validation from German and French leaders that Greece will stay in the euro-zone, alongside the Bank's announcement, eased lingering concerns over the euro-zone debt crisis.
October oil added 49 cents to settle at $89.40 a barrel on the New York Mercantile Exchange. The intraday range for WTI was $88.01 to $90.15 a barrel.
Although the U.S. Labor Department reported that first-time claims for unemployment insurance increased by 11,000 last week, traders Thursday shrugged off U.S. economic reports and instead focused on the euro-zone.
Brent crude for October delivery gained $2.94, settling at $115.34 a barrel at expiration. Brent peaked at $116.10 a barrel and bottomed
out at $111.75.
Meanwhile, front-month natural gas fell 16.1 cents Thursday on bearish EIA data. The U.S. Energy Information Administration said that
inventories grew by 87 billion cubic feet—higher than analysts' expectations. The EIA reports showed a build of 3.112 trillion cubic
feet for last week. After fluctuating between $3.875 and $4.08, natural gas settled at $3.878 per thousand cubic feet.
Reformulated gasoline blendstock, or RBOB, settled higher 5.71 cents at $2.78 a gallon. Thursday's gasoline prices traded within a range
from $2.716 a gallon to $2.807.