Crude oil rose from a one month low on speculation demand will increase as the global economy recovers from its worst recession since World War II. A report today in the U.S., the world’s largest oil user, will probably show New York manufacturing expanded for a fourth month in October, based on the median estimate in a Bloomberg survey of economists. Oil also rose as the dollar declined, increasing the investment appeal of commodities and pushing up the price producers must seek to maintain purchasing power.
Oil “has been a trade based on the recovery story and that hasn’t changed,” said Toby Hassall, a research analyst with CWA Global Markets in Sydney. “The weakness in the U.S. dollar should remain a pretty supportive factor.” Crude oil for December delivery rose as much as 72 cents, or 0.9 percent, to $77.07 a barrel in after hours electronic trading on the New York Mercantile Exchange. It was at $77 at 8:29 a.m. in Singapore. The contract fell 59 cents to $76.35 a barrel on Nov. 13, the lowest settlement since Oct. 14, after an unexpected decline in U.S. consumer confidence. Prices fell 1.4 percent last week as U.S. jobless claims increased, fuel stockpiles rose and the nation’s refiners reduced operating rates to a 13 month low.....Read the entire article.
No comments:
Post a Comment