Crude oil rose, closing at a record high, after government reports showed increased U.S. factory orders and consumer spending.
Robust growth in the U.S. and China have stimulated fuel
demand, leaving minimal spare capacity. U.S. factory orders
gained for a fourth straight month in June, a report showed.
Americans made and spent more money in June, according to a
separate report. Oil surged yesterday on concern that Saudi
Arabian supply may be threatened after King Fahd’s death.
“Gasoline and heating oil are leading the way,” said Phil
Flynn, vice president of risk management at Alaron Trading Corp.
in Chicago. “The economic numbers suggest that consumers will
continue to shrug off high prices and continue to buy gasoline.
The manufacturing numbers show that industrial demand for fuel
will be strong as well.”
Crude oil for September delivery rose 32 cents, or 0.5
percent, to $61.89 a barrel on the New York Mercantile Exchange,
the highest closing price since trading began in 1983. Futures
touched $62.30 a barrel yesterday, a record intraday price.
Prices are up 41 percent from a year ago.
Bloomberg News
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