You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Japan’s exports up in September, deficit persists
      TOKYO – Japan’s trade deficit edged higher in September though exports rose more than expected as the yen weakened to a near six-year low, the Finance Ministry said Wednesday.
  • Kleenex maker plans 1,300 cuts
    DALLAS – Kimberly-Clark plans to eliminate up to 1,300 jobs as part of restructuring efforts aimed at reducing costs and making its business more efficient.
  • McDonald's plans changes as sales slip
    NEW YORK – McDonald's CEO Don Thompson said Tuesday the company hasn't been keeping up with the times and that changes are in store for its U.S. restaurants.
Advertisement

Oil rises toward $104 ahead of Fed statement

BANGKOK (AP) — The price of oil staged a modest recovery Wednesday, a day after hitting a four-week low, but traders say bigger gains would likely be short-lived.

Benchmark oil for August delivery was up 42 cents to $103.50 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell $1.47 Tuesday to finish at $103.08 per barrel, the lowest closing price since July 3.

Traders are waiting to see if the Energy Department will report another draw in oil supplies after a surprisingly large drop of 30 million barrels over the past month. However, oil supplies remain high compared with the five-year average, and that will constrain the price of crude.

"Energy prices have been supported in recent weeks by renewed optimism about global demand and a revival of concerns about the geopolitical situation in the Middle East. However, we do not expect this to last," Jessica Hinds of Capital Economics said in a commentary.

"On the demand side, although US crude stocks have fallen by more than expected recently, we would be wary of placing too much weight on this development," Hinds said.

Later Wednesday, the Federal Reserve will give an updated assessment of the U.S. economy when it wraps up a two-day meeting in Washington. The government will release the first reading of second-quarter gross domestic product growth. Analysts expect the economy expanded more slowly last quarter compared with the 1.8 percent growth reported for the first three months of the year.

On Friday the release of employment data for July will be examined for hints about future energy demand in the world's No. 1 economy.

Brent crude, which is traded in London, fell 50 cents to $106.41.

In other energy futures trading on Nymex:

— Wholesale gasoline fell 2.7 cents to $2.948 a gallon.

— Heating oil fell 1.4 cents to $2.996 a gallon.

— Natural gas rose 1 cent to $3.442 per 1,000 cubic feet.

Advertisement