Crude Oil Is Set for Weekly Gain on Dollar, China’s Demand

Crude oil rose for a fifth day as the dollar fell toward a nine month low and industrial production in China, the world’s second biggest energy user, grew at a faster pace than forecast. Oil is poised for its first weekly gain in three after the dollar reached its lowest level since Dec. 18 against the euro for a second day as China’s factory output gained and new loans exceeded analyst expectations, reducing demand for the U.S. currency as a refuge. A weaker dollar increases demand for commodities as a hedge against inflation. “The expectation is that China is on a strong growth path,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “Also supportive of oil prices was the fact that the U.S. dollar has remained fairly soft.” Crude oil for October delivery rose as much as 41 cents, or 0.6 percent, to $72.35 a barrel on the New York Mercantile Exchange. It was at $72.26 a barrel at 11:43 a.m. Singapore time. Prices have gained 6.3 percent this week and climbed 62 percent this year.....Read the entire article