Friday, October 29, 2010

Crude Oil Pares Monthly Gain as Asian Shares Decline, Dollar Rebounds

Crude oil fell in New York, trimming a second monthly gain, as Asian equities dropped and the dollar’s rebound curbed investor demand for raw materials. Crude gave up yesterday’s 0.3 percent increase as equities declined, driving the MSCI Asia Pacific Index toward its second weekly drop. Crude stockpiles in the U.S., the world’s biggest oil consuming nation, reached the highest in 17 months after surging 5 million barrels in the week ended Oct. 22, according to Energy Department data. Futures have climbed 2.2 percent this month after an 11 percent rally in September.

“There’s no real consensus in markets so that’s why you’re getting this choppy trading where people are changing their view quite regularly, and that’s creating volatility,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “It does seem to be more sentiment driven and currency driven.” Crude for December delivery declined as much as 55 cents, or 0.7 percent, to $81.63 a barrel in electronic trading on the New York Mercantile Exchange. It was at $81.71 at 1:50 p.m. Singapore time. Yesterday, the contract added 24 cents to $82.18. Prices, little changed this week, have gained 3 percent since the start of the year.

The dollar climbed 0.4 percent to $1.3876 against the 16 nation euro, damping the appeal of commodities as a hedge against inflation. The yen rose against all major currencies......Read the entire article.

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