Bloomberg News

Oil Declines After Last Week’s Gain; U.S. Futures Little Changed

August 05, 2012

Oil fell in New York after posting the biggest gain in five weeks and gold futures declined. U.S. equity futures were little changed as the Standard & Poor’s 500 Index closed at a three-month high last week.

Oil retreated 0.3 percent to $91.09 a barrel as of 7:23 a.m. in Tokyo, paring the 4.9 percent rally on Aug. 3. Gold lost 0.2 percent. S&P 500 futures expiring in September added less than 0.1 percent to 1,389.10. The euro traded at $1.2385 after rising 0.5 percent last week.

Greece and its international creditors agreed on the need to strengthen policy efforts to support the economy and comply with its bailout terms after more than a week of meetings in Athens. The trade deficit in the U.S. probably shrank in June as cheaper oil reduced the import bill and slower global growth led to reduced demand for American-made goods, economists said before a report this week.

Representatives from the so-called troika of the European Commission, European Central Bank and International Monetary Fund met with Greek Finance Minister Yannis Stournaras in Athens at the conclusion of the meetings. The talks will determine whether Greece continues receiving funds from the country’s 240 billion euros ($297 billion) of rescue packages.

The U.S. trade deficit narrowed to $47.5 billion, the smallest in four months, from $48.7 billion in May, according to the median forecast of 59 economists surveyed by Bloomberg News before the Commerce Department issues the data on Aug. 9. Another report may show worker productivity rose and labor costs eased in the second quarter.

To contact the reporter on this story: Lynn Thomasson in New York at lthomasson@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net


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