Crude oil rose to a seven week high as equity markets advanced, increasing optimism that a growing global economy will bolster fuel demand. Oil climbed as much as 2.9 percent as the MSCI Emerging Markets Index climbed to its highest level in five weeks after India’s economy improved. The gain accelerated as the dollar weakened against the euro, raising demand for commodities as an alternative investment.
“We are seeing new fund money come into commodities,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “Everyone is focused on growth and how best to profit from it. There are still a lot of jobless but the economy has begun to grow.” Crude oil for April delivery rose $1.93 or 2.5 percent, to $80.63 a barrel at 1:12 p.m. on the New York Mercantile Exchange. Futures touched $80.95, the highest level since Jan. 12. Prices have doubled from a year earlier.
Oil has traded between $69.50 and $83.95 a barrel this year. Futures have topped $80 every day since Feb. 19. “This is still a range-bound market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We are testing the top end of the range right now on some positive economic sentiment, but it’s questionable whether we can actually break through.”
“There’s no single news item behind today’s move,” said Tom Bentz, a broker at BNP Paribas Commodity Futures Inc. in New York. “We’ve been trading between $77 and the $85.50 area for the last week and have finally poked through on the upside. It is questionable if it can continue to advance from here”.........Read the entire article.
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