08/28/2011
by Claudia Assis-MarketWatch.com
Crude-oil futures finished slightly higher Friday as U.S. Federal Reserve Chairman Ben Bernanke offered a more optimistic view of the U.S. economy and deferred all talk of further steps to a policy meeting in late September. Oil's first reaction was to extend its early decline as Bernanke dashed the hopes for at least some hint of economic stimulus, which would work to spur more oil demand.
But Bernanke "did offer an optimistic assessment of the U.S. economy, and that gave us a little bit of a bounce," said Jim Ritterbusch, president of Ritterbusch and Associates in Illinois.
The lack of additional stimulus measures, however, would make it “very difficult” to keep that bounce going for long, he said.
Crude for October delivery tacked on 3 cents, or 0.1%, to settle at $85.37 a barrel on the New York Mercantile Exchange. It had earlier traded as low as $82.95 a barrel and as high as $85.64 a barrel.
For the week, oil climbed 3.8%.
Bernanke spoke at a yearly gathering of central bankers in Jackson Hole, Wyo. At last year’s meeting, he had signaled the second round of the Fed’s asset-buying program known as quantitative easing. Read more about Bernanke’s speech.
Energy products were mixed Friday, with gasoline keeping its losses.
The commodity had gotten a lift Thursday from fears of Hurricane Irene disrupting East Coast refineries.
The hurricane will miss the Gulf Coast area, the heart of the refining and oil production industry, but threatens several refineries in the East Coast. Irene, a Category 2 hurricane, could intensify, the National Hurricane Center said.
Gasoline for September delivery lost 3 cents, or 1.1%, to end at $2.93 a gallon.
September heating oil added 2 cent, or 0.8%, to $3.01 a gallon.
On the week, heating oil and gasoline have gained more than 3%.
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