Crude Gains, Trimming Weekly Loss on Citigroup Profit, Economic Confidence
Oil gained, trimming this week’s decline, as reports of lower inflation in the U.S. and better- than-forecast earnings at Citigroup Inc. (C) buoyed confidence in the global economic recovery.
Futures reversed earlier losses as the consumer-price index decreased 0.2 percent while Citigroup Inc., the third-biggest U.S. bank, said profit rose 24 percent, beating analysts’ estimates. Brent crude has lost 1.3 percent this week as Standard & Poor’s joined Moody’s Investors Service in reviewing the U.S.’s credit rating. Oil may rebound next week, according to a Bloomberg News survey of traders and analysts.
Brent oil for September settlement gained as much as 0.7 percent to $117.09 a barrel on the London-based ICE Futures Europe exchange. Earlier it dropped as much as 0.7 percent to $115.45, and was at $116.60 as of 1:37 p.m. London time.
On the New York Mercantile Exchange, crude for August delivery was at $96.12 a barrel, 43 cents higher. The contract yesterday declined $2.36 to $95.69, the lowest since July 11.
Thirteen of 30 analysts surveyed by Bloomberg, or 43 percent, forecast oil will rise through July 22. Eleven respondents, or 37 percent, predicted prices will fall and six estimated there will be little change. Last week, 51 percent of those surveyed said futures would drop.
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