The Car and Truck Fleet and Leasing Management Magazine

Crude Oil Trades at $129.35

June 02, 2008

NEW YORK --- The price of crude-oil futures climbed as much as $2 a barrel Monday, June 2, as new U.S. manufacturing figures helped ease concerns over slowing demand for oil, MarketWatch reported. News that the hurricane season's first Atlantic storm missed key oil installations in the Gulf of Mexico kept price gains in check.

Crude oil for July delivery was last up $2 at $129.35 a barrel in morning trading on the New York Mercantile Exchange, compared to an earlier low of $125.30.

The market had opened "weaker due to the failure of the Tropical Storm Arthur to affect Mexican production," Michael Lynch, president of Strategic Energy & Economic Research (SEER), told MarketWatch. "The weak U.S. economy is weighing heavily on demand, but the new ISM numbers, which are moderately bullish, might put a floor under oil prices," he added in e-mailed comments.

Traders have worried that high oil prices have hurt demand, but the latest economic data may help ease those concerns in the near-term.

Crude-oil prices had dropped sharply last week, losing 3.7 percent after reaching a record high above $135 a barrel on May 22.

Charles Perry, president of energy consulting firm Perry Management, told MarketWatch there was likely a "giant profit taking last week," with trading volume shooting up Thursday and Friday, reaching about 45 million contracts on Friday. "So today, the traders are establishing a new position at a lower price," he said.

The short-term direction of oil price is expected to hinge on whether U.S. and global demand remains strong.




Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

Sponsored by

An OBD-II port is included in all light-duty vehicles manufactured in 1996 or later. It allows for a scanning tool to be used with the vehicle to determine certain diagnostic information.

Read more

Fuel Saving Strategies Survey

View our 2008 survey to benchmark your fleet's fuel and green strategies with other fleets.

Fuel Calculator

A managed fuel program can help you save time and money and gain control over the way you fuel your vehicles. Determine your potential savings by using our fuel calculator.
Launch Fuel Calculator 

Fuel Prices

U.S. Gasoline and Diesel Fuel Prices.

Launch Fuel Prices 

Up Next

More From The World's Largest Fleet Publisher