Oil around US$89
NEW YORK, United States
OIL stayed around US$89 a barrel yesterday ahead of President Barack Obama’s speech on jobs and the economy.
Investors hope to get a clearer picture of where the economy is headed when Obama speaks about jobs creation before a joint session of Congress Thursday night.
US Federal Reserve Chairman Ben Bernanke said earlier in the day in Minneapolis said the Fed will consider various ways to stimulate the economy when it meets later this month, but he gave no specifics.
Obama’s speech is expected to include a US$300-billion plan to create jobs. He’ll likely propose a series of initiatives, including extensions of the payroll tax cut and long-term unemployment benefits, tax incentives for companies to expand their workforce and money for public works projects.
High US unemployment and the debt crisis in Europe have kept oil between US$80 and US$90 per barrel for more than a month, as investors worried about diminished demand for oil and gas in the sluggish economy.
Benchmark crude fell 29 cents on Thursday to finish at US$89.05 per barrel in New York. Brent crude, used to price many international varieties of oil, fell US$1.25 to end at US$114.55 in London.
Oil rose this week, mostly on expectations that the hurricane season will continue to slow down oil production and refining, after Hurricane Irene and Tropical Storm Lee hampered operations on the East Coast and in the Gulf of Mexico. Now Tropical Storm Maria in the Atlantic is moving toward Florida, while Tropical Storm Nate churns in the Gulf, near Mexico.
The government reported yesterday that US oil supplies dropped by four million barrels last week, which was more than analysts expected. Imports were down by more than a million barrels per day, as Hurricane Irene interfered with shipping on the East Coast.
