The Cork Board

[the cork]

Crude Oil Rises as Dollar Declines Against Euro, Asian Equities Advance
By Ben Sharples - Jul 12, 2010

Crude oil rose for the fourth day in five on optimism fuel demand will increase amid improved prospects for an economic recovery in the U.S., the world’s biggest energy consumer.

Oil pared some of yesterday’s 1.5 percent decline after Asian stocks gained as better-than-estimated earnings from Alcoa Inc. boosted confidence in the global economy. Prices also climbed as the dollar declined against the euro, increasing the appeal of commodities. U.S. crude supplies probably fell last week, according to a Bloomberg News survey.

“Alcoa is typically seen as a barometer for the overall economy,” Ben Potter, a market strategist at IG Markets in Melbourne, said in an e-mailed note. “The fact that growth was driven by stronger demand and higher volumes is very important, indicating the economy’s still ticking along.”

Crude for August delivery gained as much as 43 cents, or 0.6 percent, to $75.38 a barrel in electronic trading on the New York Mercantile Exchange. It was at $75.28 at 9:06 a.m. Singapore time. Yesterday, the contract fell $1.14 to $74.95, the lowest close since July 7. Prices have declined 5.3 percent this year.

U.S. crude oil supplies probably dropped 1.35 million barrels in the seven days ended July 9, according to the median estimate of 10 analysts surveyed by Bloomberg News. Gasoline inventories probably rose 350,000 barrels last week, the survey showed before a government report tomorrow.

Oil fell yesterday as the dollar advanced amid speculation that tests to demonstrate the resilience of Europe’s banking system will fail to assure investors that the region is recovering from its sovereign-debt crisis. The U.S. currency traded at $1.2607 per euro at 10:41 a.m. Sydney time from $1.2596 per euro in New York yesterday.

Brent crude for August settlement gained as much as 33 cents, or 0.4 percent, to $74.70 a barrel on the London-based ICE Futures Europe exchange, and was at $74.62 at 8:56 a.m. Singapore time. Yesterday, the contract dropped $1.05, or 1.4 percent, to $74.37.

http://www.bloomberg.com/news/2010-07-12/crude-oil-trades-near-three-day-low-after-dollar-strengthens-against-euro.html