Crude Oil advanced for a second day in New York as the dollar fell against the euro after bigger than expected U.S. job losses spurred speculation that the Federal Reserve will buy more debt to boost the economy. Futures rose 1.2 percent on Oct. 8 after the Labor Department said that employers cut 95,000 workers in September following a revised 57,000 decrease in August. The median estimate of economists surveyed by Bloomberg News was for a drop of 5,000. A weaker U.S. currency increases the appeal of commodities as an alternative investment.
“The market is pricing in a high probability of quantitative easing and so the U.S. dollar has come off,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “A lot of it seems to be because of the weaker non-farm payrolls number.” Crude for November delivery gained as much as 76 cents, or 0.9 percent, to $83.42 a barrel in electronic trading on the New York Mercantile Exchange, and was at $83.13 at 12:43 p.m. Sydney time. Futures climbed 99 cents to $82.66 on Oct 8. Prices are up 4.8 percent this year.
The dollar lost 0.3 percent to $1.3978 per euro, after closing at $1.3939 on Oct. 8 in New York. The Fed may purchase bonds in a strategy known as quantitative easing, weakening the U.S. currency and boosting dollar denominated commodities. Brent crude for November settlement climbed as much as 53 cents, or 0.6 percent, to $84.56 a barrel on the ICE Futures Europe exchange in London. It jumped 60 cents, or 0.7 percent, to $84.03 on Oct. 8.......Read the entire article.