Bloomberg News

Oil Rises in N.Y. After U.S. Economy Grows in 1st Quarter

June 28, 2012

Oil rose in New York after a report showed the U.S. economy grew 1.9 percent in the first quarter, reflecting a gain in consumer spending.

Futures advanced as much as 0.8 percent after the Commerce Department in Washington said the revised gross domestic product reading matched the increase previously calculated by the government. Crude fell earlier as the European Commission said economic confidence in the euro area slumped to the lowest in more than 2 1/2 years in June and Germany reported that unemployment rose for a fourth month this year.

“The U.S. seems to be the one country who can pull us out of the mud,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen. “The market is confused as we have two forces pulling the market in either direction.”

Oil for August delivery on the New York Mercantile Exchange gained as much as 63 cents to $80.84 a barrel and was at $80.68 at 1:53 p.m. London time. The contract earlier fell 46 cents, or 0.6 percent, to $79.75.

To contact the reporter on this story: Rupert Rowling in London at rrowling@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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