Oil Rises and Dollar Drops
Oil rose in New York for the first time in three days that the dollar extended its losses, strengthening the investment attractiveness of commodities, and amid speculation U.S. fuel supplies decreased.
Crude oil rose to 0.5 percent in the dollar index, which tracks U.S. currency against major trading partners, traded near its lowest level since January on bets the Federal Reserve will resume purchases of bonds to boost growth. oil stocks held by the U.S., the world’s largest users of oil, fell last week, according to Bloomberg News survey before a report tomorrow from the Department of Energy.
“About $ 80 is a reasonable price for producers and consumers, so that the direction of the oil market is being determined by the U.S. dollar,” said Ken Hasegawa, a sales manager products Newedge Group in Tokyo. “Although we still see high inventories, the market is expecting increased demand in the coming year.”
Crude for November delivery rose to 42 cents, or 0.5 percent, to $ 82.09 a barrel in electronic trading on the New York Mercantile Exchange. It was at $ 82.07 at 10:39 am Mexico City time. Yesterday, the contract fell 54 cents, or 0.7 percent, to settle at $ 81.67. Futures are up 3.3 percent in 2010.
The dollar index, used by IntercontinentalExchange Inc. to track the dollar against currencies like the euro, yen and Swiss franc, fell 0.3 percent to 77.17 today. Touched 76,906 on 7 October, the lowest since Jan. 15.
Oil fell 1 percent in the past two days amid speculation that the Organization of Petroleum Exporting Countries will maintain output targets at a meeting tomorrow in Vienna. The 12 – member group pumps 40 percent of world crude.
Saudi Arabia’s oil minister, Ali al-Naimi, whose country is the largest producer in OPEC, said on October 11 global market is “well balanced” and oil prices between $ 70 and $ 80 a barrel was “ideal “.
Yesterday, OPEC raised its forecast for global oil demand this year by 100,000 bpd to 85.59 million from 84.46 million in 2009. Consumption will increase by 1.2 percent to 86.64 million bpd in 2011, the group said in its monthly oil market.
Brent crude oil for November settlement with London-based ICE Futures exchange in Europe gained as much as 38 cents, or 0.5 percent, to $ 83.88 a barrel. Yesterday, the contract fell 22 cents, or 0.3 percent, to $ 83.50.
U.S. Gasoline stocks are expected to have fallen 1.5 million barrels in the week to October 8, based on the median estimate of 18 analysts surveyed by Bloomberg News. Inventories of distillate fuel, including diesel and heating oil probably fell 1.2 million barrels.
Held commercial crude inventories rose 1.4 million barrels last week, the poll found. The stock earlier reached 360.9 million, 13 percent above the average of five years.
“There is demand, but still relatively warm,” said Ben Westmore, minerals and energy economist at National Australia Bank Ltd. in Melbourne. “Then, couple that with the fact that oil reserves are still at very high levels, so that the fundamental situation is very weak. ”
The Energy Department will release its weekly petroleum status report tomorrow at 11 am in Washington, a day later than usual due to Columbus Day holiday Oct. 11. The industry-funded American Petroleum Institute issued its report today.