Finotec News Archive - August 27 2007
Oil Trades Higher on Improved U.S Economic Outlook
Oil Trades Near One-Week High on Improved U.S. Economic OutlookRodian Rahnayev 
27 August 2007
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Crude oil traded near a one-week high in New York as concern eased that a slowdown in the U.S. economy may cut demand in the world's largest user. Oil had its biggest gain this month and stock prices surged after U.S. Commerce Department reports on Aug. 24 showed new home sales unexpectedly increased in July and durable goods orders rose more than forecast. ``Demand in the U.S. remains relatively good,'' said Victor Shum, senior principal at consultants Purvin & Gertz Inc. in Singapore.
Concern about ``international financial markets will continue to pull back oil prices and it's likely to stay in a low seventies range in the coming week.'' ``The markets have calmed down,'' said Tobin Gorey, commodity strategist at Commonwealth Bank of Australia Ltd. ``There is still a concern that growth might turn out to be slower there and that might hurt demand. That's not a view that we share.'' The Organization of Petroleum Exporting Countries pumps about 40 percent of the world's oil and cut production last year to increase prices and stem rising stockpiles. The group will review that output ceiling at a meeting in Vienna on Sept. 11.
Finotec Analysis Team
27 August 2007
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