Oil rose for the first time in five days in New York as the dollar declined and some investors believe that the decline of crude oil to almost the lowest in nearly three weeks made it attractive to buy.
Futures lost 3.7 percent last week, the biggest decline since the week ending August 13, after Enbridge Energy Partners LP began with a U.S. pipeline that sends Canadian oil to refineries in the Midwest. Prices rose today as the U.S. currency has a portion of its profits September 17, increasing the appeal of commodities as alternative investments.
“At times like this, oil tends to things like movements in the dollar down and maybe some short-term behavior of investors,” said Ben Westmoreland, a minerals and energy economist at National Australia Bank Ltd. in Melbourne.
The October contract as much as 36 cents, or 0.5 percent, added to $ 74.02 per barrel in electronic trading on the New York Mercantile Exchange and was at $ 73.90 at 12:32 Sydney time. She has lost 91 cents to $ 73.66 on September 17, the lowest settlement since August 31. Prices down 6.9 percent this year.
Enbridge on September 17 launched its 670 000 barrels per day pipeline 6A. The 34-inch line was shut down after a break September 9, that about 6100 barrels of oil spilled in Romeoville, about 30 miles (48 kilometers) southwest of Chicago.
“The opening of the Line 6A prices unlikely to help,” National Australia Bank Westmoreland said.
Dollar Drops
The dollar fell towards a five-week low against the euro before a report today that economists said will show the U.S. housing market is difficult to recover. The U.S. currency also weakened against most of its major counterparts on speculation the Federal Reserve tomorrow signal closer to moving forward to keep borrowing costs low.
The dollar fell to $ 1.3078 per euro from $ 1.3050 in Singapore 10:10 in New York on September 17, when he is $ 1.3159, the weakest level since August 11 touched.
Brent crude oil for November settlement gained as much as 43 cents, or 0.6 percent, to $ 78.64 on the London-based ICE Futures Europe exchange. He fell 27 cents, or 0.3 percent, to $ 78.21 to solve on September 17.
source:bloomberg
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