Oil Trades Near 31-Month High in New York
Source: Bloomberg, Sherry Su and Ayesha Daya (4/26/11)
"This will add complexity to trading around the FOMC statement."
Oil recovered from a 1% decline as June futures on the Standard & Poor's 500 Index gained as much as 0.5%, after companies including United Parcel Service Inc. and Ford Motor Co. reported higher-than-estimated earnings. Federal Reserve Chairman Ben Bernanke is due to hold his first press conference following a policy meeting of the Federal Open Market Committee (FOMC) that begins today.
"This will add some complexity to trading around the FOMC statement," Olivier Jakob, managing director of Geneva-based consultant Petromatrix said in a report.
Crude for June delivery on the New York Mercantile Exchange was up $0.16 at $112.44 a barrel at 1:35 p.m. London time after falling as low as $111.12. Yesterday, it traded at $113.48, the highest since Sept. 22, 2008. Brent crude for June settlement on the London-based ICE Futures Europe exchange was up $0.49 at $124.15 a barrel, reversing yesterday's 0.3% decline.
Futures slid earlier after Saudi Aramco Chief Executive Officer Khalid al-Falih said the world's biggest crude exporter is concerned about the impact of prices on economic growth. Oil also declined with other commodities amid speculation that the Federal Reserve may end its bond-buying program. A government report tomorrow may show crude supplies in the U.S. increased last week, according to a Bloomberg News survey.