Crude oil rose for a second day as the dollar weakened against the euro, increasing the appeal of commodities as an alternative investment, and equities advanced. Oil gained as much as 1.9 percent as the dollar, which traded at an eight month high last week, fell for the first time since Feb. 2 amid speculation European officials meeting this week will assist Greece in tackling its budget deficit. The Standard & Poor’s 500 Index also rose on the outlook for Greece.
“It looks like the rebound of the dollar is weakening a bit, and that’s what’s driving oil to the largest extent right now,” said Kyle Cooper, a managing director at energy consultant IAF Advisors in Houston. “The dollar and equities are certainly having a significant impact.” Crude oil for March delivery rose $1.17, or 1.6 percent, to $73.06 a barrel at 10:26 a.m. on the New York Mercantile Exchange. Futures have gained 85 percent in the past year.
The dollar lost 0.7 percent against the euro to $1.3744 from $1.3649 yesterday. It touched $1.3586 on Feb. 5. “The overall market is up because the euro has strengthened on speculation that the European Union will do something to assist the Greek government with their deficit,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.....Read the entire article.
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