Crude Oil Rises to Near 12 Week High as Equities Gain on Economic Optimism

Crude Oil traded near $79 a barrel in New York for a third day as advancing equities in Asia bolstered speculation the global recovery in fuel demand will be sustained. Crude earlier rose as much as 0.4 percent as the MSCI Asia Pacific Index reached a one month high after most European banks passed stress tests aimed at assuring investors. Consumer spending, which accounts for about 70 percent of the U.S. economy, the world’s largest, probably increased last quarter, according to a Bloomberg News survey of economists before a report this week.

“The market is on the way to test $80 and the stock market is one of the factors,” said Ken Hasegawa, a commodity derivatives sales manager at broker Newedge Group in Tokyo. “After the result of the stress tests, we have to continue to monitor the financial markets. Even on Friday, the markets sustained gains.”

Oil for September delivery was at $78.99 a barrel in electronic trading on the New York Mercantile Exchange, up 1 cent, at 1:05 p.m. Singapore time. On July 23, the contract fell 32 cents, or 0.4 percent, to $78.98 after settling at $79.30 on July 22, the highest since May 5. Futures have gained 16 percent in the past year.

The MSCI Asia Pacific Index climbed 0.3 percent to 117.72 as of 1:25 p.m. in Tokyo amid optimism over the health of the global economy. Finance companies were the biggest boost to the index, set for the highest close since June 22.....Read the entire article.

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