Crude oil futures rose as the U.S. dollar fell to a five-month low against the euro, increasing the investment appeal of commodities, and equities advanced.
Crude erased an earlier loss as the dollar declined after the Conference Board, a private research group in New York, said its confidence index fell to 48.5 in September from 53.2 the prior month. Analysts expected a drop to 52.1.
“The weaker dollar is one of the things driving the price back up,” said Chris Barber, a senior analyst at Energy Security Analysis Inc. in Wakefield, Massachusetts. “The market is waiting for concrete evidence of demand coming back.”
Crude for November delivery rose 26 cents, or 0.3 percent, to $76.78 a barrel at 1:31 p.m. on the New York Mercantile Exchange. Brent crude oil for November delivery advanced 69 cents, or 0.9 percent, to $79.26 a barrel on the London-based ICE Futures Europe exchange.
The dollar fell 1 percent to $1.3588 against the euro in New York. It touched $1.3595, the weakest level since April 15. The dollar index, a gauge of the currency versus six major trading partners, fell 0.7 percent to 78.886.
The Reuters/Jefferies CRB Index of 19 commodities rose 0.6 percent to 285.71 in New York.
Oil also rose as U.S. stocks moved higher, signaling that the economy may grow and boost fuel demand. The Standard & Poor’s 500 Index rose 0.2 percent to 1,144.14. The Dow Jones Industrial Average gained 0.2 percent to 10,838.69.
“Investors are using the stock market as a proxy of future economic performance,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis.
Gasoline Stockpiles
Oil fell earlier on speculation that the Energy Department will report tomorrow that gasoline stockpiles rose last week. The median of 14 analyst estimates compiled by Bloomberg was a gain of 350,000 barrels. Stockpiles rose to 226.1 million barrels in the week ended Sept. 17, a six-month high.
“People are looking ahead to the stats tomorrow, and we should expect another build in gasoline,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “There is a lot of oil in inventory right now and prices are going to have a hard time to stay up.”
Total petroleum supplies, including crude oil and fuel, climbed to 1.14 billion barrels in the week ended Sept. 17, the highest since at least 1990, according to the department. Total consumption of petroleum products fell 1.8 percent that week.
Crude stockpiles probably declined 700,000 barrels last week from the previous week’s 358.3 million, and inventories of distillate fuel, a category that includes heating oil and diesel, may rise 325,000 barrels, the Bloomberg survey showed.
To contact the reporter on this story: Moming Zhou in New York at Mzhou29@bloomberg.net;
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
http://jodnet.blogspot.com
Crude erased an earlier loss as the dollar declined after the Conference Board, a private research group in New York, said its confidence index fell to 48.5 in September from 53.2 the prior month. Analysts expected a drop to 52.1.
“The weaker dollar is one of the things driving the price back up,” said Chris Barber, a senior analyst at Energy Security Analysis Inc. in Wakefield, Massachusetts. “The market is waiting for concrete evidence of demand coming back.”
Crude for November delivery rose 26 cents, or 0.3 percent, to $76.78 a barrel at 1:31 p.m. on the New York Mercantile Exchange. Brent crude oil for November delivery advanced 69 cents, or 0.9 percent, to $79.26 a barrel on the London-based ICE Futures Europe exchange.
The dollar fell 1 percent to $1.3588 against the euro in New York. It touched $1.3595, the weakest level since April 15. The dollar index, a gauge of the currency versus six major trading partners, fell 0.7 percent to 78.886.
The Reuters/Jefferies CRB Index of 19 commodities rose 0.6 percent to 285.71 in New York.
Oil also rose as U.S. stocks moved higher, signaling that the economy may grow and boost fuel demand. The Standard & Poor’s 500 Index rose 0.2 percent to 1,144.14. The Dow Jones Industrial Average gained 0.2 percent to 10,838.69.
“Investors are using the stock market as a proxy of future economic performance,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis.
Gasoline Stockpiles
Oil fell earlier on speculation that the Energy Department will report tomorrow that gasoline stockpiles rose last week. The median of 14 analyst estimates compiled by Bloomberg was a gain of 350,000 barrels. Stockpiles rose to 226.1 million barrels in the week ended Sept. 17, a six-month high.
“People are looking ahead to the stats tomorrow, and we should expect another build in gasoline,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “There is a lot of oil in inventory right now and prices are going to have a hard time to stay up.”
Total petroleum supplies, including crude oil and fuel, climbed to 1.14 billion barrels in the week ended Sept. 17, the highest since at least 1990, according to the department. Total consumption of petroleum products fell 1.8 percent that week.
Crude stockpiles probably declined 700,000 barrels last week from the previous week’s 358.3 million, and inventories of distillate fuel, a category that includes heating oil and diesel, may rise 325,000 barrels, the Bloomberg survey showed.
To contact the reporter on this story: Moming Zhou in New York at Mzhou29@bloomberg.net;
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
http://jodnet.blogspot.com
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