Sunday, April 11, 2010

Crude Oil Rises as Dollar Drops on Greece Package, After China Oil Imports Gain

Oil rose for the first time in four days as the dollar fell and the euro gained after European governments offered debt burdened Greece a rescue package and China increased crude imports to meet surging demand. Oil advanced as the weaker dollar bolstered the appeal of commodities as an alternative investment. Greece was offered as much as 45 billion euros ($61 billion) at below market interest rates to end its fiscal crisis. China increased March crude oil imports by 29 percent from a year earlier, according to customs data released April 10.

“China is playing a key role in underpinning global demand for commodities, including crude,” said Toby Hassall, a research analyst at CWA Global Markets Pty in Sydney. “The Greek rescue plan, which is going to be driving the markets today, resolves a lot of the uncertainty. A weaker dollar is a supportive element for oil prices.” Crude oil for May delivery gained as much as 79 cents, or 0.9 percent, to $85.71 a barrel and was at $85.38 in electronic trading on the New York Mercantile Exchange at 12:57 p.m. Singapore time. The contract dropped 47 cents, or 0.6 percent, to $84.92 on April 9.

Crude imports by China reached 21.1 million metric tons, or about 4.98 million barrels a day, preliminary data released by the General Administration of Customs showed. Net imports reached 20.8 million tons, second only to December’s record 20.9 million tons. “China is continuing to grow at a strong rate,” CWA’s Hassall said.....Read the entire article.

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