Crude oil rose more than $1 a barrel after failing to decline below a two week low and as the India’s central bank purchase of gold bolstered the appeal of commodities to investors. Selling stopped after futures fell to $76.55 a barrel earlier today, the lowest intraday price since Oct. 15. When prices do not drop after reaching a new low, technical traders see it as a sign to purchase oil. Prices also increased after the Reserve Bank of India bought 200 metric tons of gold from the International Monetary Fund.
“Oil tested support in the $76.50 area and failed to break through,” said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. “From a technical standpoint, this was a sign that prices are moving higher.” Crude oil for December delivery climbed $1.16, or 1.5 percent, to $79.29 a barrel at 1:37 p.m. on the New York Mercantile Exchange. Prices have risen 78 percent this year. Oil fell as much as 2 percent earlier today on the announcement that the Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc received a second bailout from U.K. taxpayers, signaling that the global economy may take longer to recover from the worst recession since the 1930s.....Read the entire article.
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