Crude oil advanced, snapping the longest drop since January, as global equities strengthened and sales at U.S. retailers climbed, signals that energy demand may improve with the economy. Oil rose more than 1.2 percent as the Standard & Poor’s 500 Index climbed to the highest level since September 2008 on greater than estimated profits by Intel Corp. and JPMorgan Chase & Co. U.S. purchases gained 1.6 percent in March, the most in four months, the Commerce Department reported in Washington.
The equity markets and earnings reports are “barometers of economic activity and economic recovery,” said John Kilduff, a partner at Round Earth Capital, a New York based hedge fund that focuses on food and energy commodities. “As they go, so goes energy demand.” Crude oil for May delivery rose 27 cents, or 0.3 percent, to $84.32 a barrel at 9:58 a.m. on the New York Mercantile Exchange, ending a five day decline. Oil has gained 71 percent in the past year.
The S&P 500 rose 0.4 percent to 1,201.84, and the Dow Jones Industrial Average gained 41.72, or 0.4 percent, to 11,061.14 on the earnings, which bolstered confidence that a six week equities rally was justified. The Stoxx Europe 600 Index added 0.6 percent. The Commerce Department also revised up retail sales numbers for February and January, and the Labor Department reported that consumer prices rose 0.1 percent last month.....Read the entire article.
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