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Oil gains on rising US vehicle sales

Sep 05 2012 08:12 AFP

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Bangkok - Oil prices lifted on Wednesday after US vehicle sales rose sharply last month, a sign that fuel consumption could be on the way up in the world's No 1 economy.

Benchmark crude for October delivery was up 6 cents at $95.36 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell $1.17 to close at $95.30 per barrel on the Nymex on Tuesday.

Brent crude fell 18 cents to $114 on the ICE Futures exchange in London.

US new car and truck sales rose 20% in August to 1.3 million vehicles, according to Autodata. With US home construction starting to recover, contractors are buying more trucks to haul equipment and crews to sites. Big pickup sales drove the increase.

Energy market sentiment was further lifted by expectations that stimulus measures will soon be announced in Europe, the US and China that could boost economic growth worldwide.

The European Central Bank President Mario Draghi is expected to reveal a program Thursday aimed at easing borrowing costs. Last week Federal Reserve Chairperson Ben Bernanke suggested the Fed could do the same. A weak manufacturing report in China raised speculation that the Chinese government would also announce stimulus measures.

In other futures trading in New York, natural gas rose 1 cent to $2.86 per thousand cubic feet.

Wholesale gasoline fell marginally to $2.95 per gallon. Heating oil rose less than 1 cent to $3.15 per gallon.


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commodities  |  markets  |  oil
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