InterAksyon.com means BUSINESS
NEW YORK - Global oil prices rose Tuesday after oil-producer Iran warned against a US defense buildup in the Gulf and the dollar weakened against the euro.
Oil prices found support despite Federal Reserve Chairman Ben Bernanke's testimony to Congress delivering a gloomy outlook for the US economy, the world's biggest consumer of crude.
New York's main contract, West Texas Intermediate (WTI) light sweet crude for August, finished, finished at $89.22 a barrel, up 79 cents from Monday's closing level.
In London trade, Brent North Sea crude for delivery in September climbed 63 cents to settle at $104.00 a barrel.
Bernanke on Tuesday offered a bleak assessment of the outlook for jobs and growth, and disappointed investors by not clearly signaling fresh economic stimulus was on the way.
After the US economy grew at a modest rate of around two percent in the first quarter of this year, Bernanke said "available indicators point to a still-smaller gain in the second quarter."
Bart Melek, chief strategist at TD Securities, said the New York market initially took a hit.
"We first dropped sharply... people were disappointed as he didn't mention any QE (quantitative easing)," Melek said.
After losing about $1, the benchmark WTI contract clawed back into positive territory with the help of a weakening dollar that made dollar-priced crude oil less expensive.
Traders also focused on oil-producer Iran, which warned against the US military deployment in the Gulf after the fatal shooting of an Indian fisherman by a US Navy ship in waters off Dubai.
"When the Islamic republic says that the presence of foreign forces is a source of insecurity, this is a perfect example" of what Iran means, foreign ministry spokesman Ramin Mehmanparast said.
US defense officials said the fishing boat had ignored warnings not to approach the refueling ship USNS Rappahannock and that sailors on board the American vessel feared it could pose a threat.
The US navy has been building up its forces in the oil-rich Gulf region amid mounting tensions with Iran over its controversial nuclear program.
The market "is nervous with all the tensions in the Gulf," said Andy Lipow at Lipow Oil Associates.
InterAksyon.com means BUSINESS
BUSINESS NEWS
