Crude set for weekly loss despite yesterday's rally

30 July 2010

Written by John King

Crude oil prices were set to record the biggest weekly loss seen in four weeks this morning (July 30th), driven lower by concerns about the pace of economic recovery in the US and across the globe.

The August-delivery crude contract on the New York Mercantile Exchange rose by more than a dollar to trade above $78 a barrel yesterday, supported by a weaker dollar.

A falling dollar often promotes higher oil prices as the dollar-denominated commodity is more attractive to foreign buyers.

Heating oil prices also rose yesterday as the dollar fell, settling above $2.03 a gallon.

However, a more gloomy sentiment pervaded markets this morning as traders awaited the latest unemployment claims data from the US.

The figures are expected to show a further decline in the jobs market as conditions worsen for the world's largest economy.

Speaking to Bloomberg, Toby Hassall, a commodity analyst at CWA Global Markets in Sydney, said there is also concern about the pace of recovery in Japan.