Friday, July 9, 2010

Crude Oil Rises as Stocks Climb on Optimism Over Global Economic Recovery

Crude oil rose for a third day as equities gained on optimism that the global economic recovery will accelerate. Oil advanced as much as 1.2 percent as the MSCI World Index headed for its biggest weekly rally in a year. The global economy will grow 4.6 percent in 2010, the biggest expansion since 2007, the International Monetary Fund said on July 7 in revisions to its World Economic Outlook.

“We’re going to be looking at the equities and the dollar for direction here,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. Crude oil for August delivery rose 81 cents, or 1.1 percent, to $76.25 a barrel at 10:46 a.m. on the New York Mercantile Exchange. Futures touched $76.36, the highest intraday price since June 30. Oil is set for a 5.7 percent increase this week, the most since the week ended April 2.

Brent crude for August settlement climbed 89 cents, or 1.2 percent, to $75.60 a barrel on the London based ICE Futures Europe exchange. Oil may rise next week after the IMF upgraded its global economic outlook and as U.S. supplies dropped to a two month low, a Bloomberg News survey showed. Twenty of 38 analysts and traders, or 53 percent, forecast crude will increase through July 16. Ten respondents, or 26 percent, predicted futures will be little changed and eight saw a decrease.

Reporter Mark Shenk can be contacted at

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