NEW YORK, Jun 16 (NNN-XINHUA) – Crude oil futures prices posted solid growth yesterday, thanks to hopes for strong oil demand and the plunge of the U.S. dollar.
The West Texas Intermediate (WTI) for July delivery, gained 2.35 U.S. dollars, or 3.44 percent, to settle at 70.62 U.S. dollars a barrel, on the New York Mercantile Exchange. Brent crude for Aug delivery added 2.47 U.S. dollars, or 3.37 percent, to settle at 75.67 U.S. dollars a barrel, on the London ICE Futures Exchange.
The United States recorded 686.6 billion U.S. dollars of retail and food service sales in May, up 0.3 percent, month on month, according to data issued by the U.S. Census Bureau yesterday.
The higher-than-expected growth in retail and food service sales in May, offers hopes for strong petroleum demand in the United States.
Meanwhile, Chinese crude throughput in May, jumped 15.4 percent, year on year, reaching 62 million tonnes, according to data issued by China’s National Bureau of Statistics, yesterday.
Oil might find some support, as energy traders expect China’s recovery to only improve and, as Wall Street doubts Federal Reserve Chair, Jerome Powell, will be able to deliver on his hawkish threats, said Edward Moya, senior market analyst at OANDA, a supplier of online multi-asset trading services.
Moreover, the rising risk appetite in the market, and a deep fall of the U.S. dollar provide additional support to oil prices.
