Oil rises with equities, capping first monthly drop since July
January 30, 2010 |12:33 | Oil By : Team X
Crude oil rose, limiting its first monthly drop since July, as advancing equity markets reaffirmed confidence in the economic recovery. The U.S. Senate Thursday unanimously passed sanctions on foreign companies that sell refined petroleum to Iran, holder of the world's second-largest crude reserves.
Oil has lost 6.7 percent this month on concern the U.S. government will limit trading by banks and that China will take further steps to cool its economy. Crude oil for March delivery increased as much as 45 cents, or 0.6 percent, to US$74.09 a barrel in electronic trading on the New York Mercantile Exchange. It traded for US$73.90 at 10:09 a.m. local time.
The dollar was little changed at US$1.3975 against the euro after earlier reaching US$1.3913, the highest since July 14. Oil may fall next week as U.S. supplies increased and fuel demand lags behind year-earlier levels, a Bloomberg News survey showed.
Eighteen of 38 analysts and traders polled, or 47 percent, said prices will decline through Feb. 5. Ten respondents, or 26 percent, forecast an increase and 10 said futures will be little changed. Last week, 43 percent of respondents predicted a drop.
U.S. crude oil and gasoline inventories are more than 4 percent over the five-year average level, according to Energy Department data released on Jan. 27. Distillate fuel stockpiles, including heating oil and diesel, climbed to 157.5 million barrels last week, 16.2 percent above the average.
Brent crude oil for March settlement was at US$72.41 a barrel on the London-based ICE Futures Europe exchange, up 28 cents at 9:22 a.m. London time.
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