Oil prices rally on demand outlook

By Blake Ellis, staff reporter

NEW YORK (CNNMoney.com) -- Oil prices gained for a third day Thursday as the dollar weakened and Chinese economic data boosted confidence in global demand for oil.

What prices are doing: Crude oil for July delivery rose $1.10, or 1.5%, to settle at $75.48 a barrel on Thursday after jumping more than 3% on Wednesday.


The national average price for a gallon of regular unleaded gasoline fell to $2.706 from the previous day's price of $2.713, according to motorist group AAA.

What's moving the market: Oil prices were lifted Thursday as stocks rebounded and the dollar fell against major currencies.

Oil and other commodities that are priced in dollars tend to rise when the U.S. currency weakens.

Prices were also boosted by a report out Wednesday showing a bigger-than-expected drop in supplies last week and positive economic data from China.

Chinese exports surged nearly 50% in May compared to a year earlier, widely beating expectations, according to a China Daily report. Meanwhile, imports jumped 48%.

"This shows that China is importing more crude, and that's what the market has really paid attention to and what is moving prices up," said James Williams, president and energy economist at WTRG Economics.

As confidence in a global recovery and petroleum demand continues to increase, oil prices will benefit.

"Today it's a matter of risk versus no risk," said Williams. "If traders keep desiring more risk, you'll keep seeing higher prices."

Wednesday's oil supply report from the Energy Information Administration, which showed that crude inventories fell more than expected last week, will also support higher prices on Thursday, he said.

Outlook: Williams said he expects prices to remain above $70 for the rest of the year, assuming that the euro zone's debt crisis doesn't worsen.

"If we avoid a meltdown in the European economy, I think we'll see oil in a $70 to $80 range," he said. "But if the euro collapses and Europe goes into a double dip [recession], we could see prices go into a $60 range." To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
Find personalized rates:
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET


Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.