Baku -APA-ECONOMICS. Crude oil traded near $79 a barrel in New York after rising the most in six weeks on optimism fuel demand will increase amid improved prospects for an economic recovery in the U.S., the world’s biggest energy consumer.
Oil prices eased today as traders sold futures to lock in yesterday’s 3.3 percent gain as equities climbed to 13-month highs. Stock markets rose after U.S. retail sales increased more than forecast and Asian leaders pledged to maintain stimulus spending. Crude also gained as the dollar weakened, increasing the appeal of commodities as an alternative investment.
Crude oil for December delivery traded at $78.64 a barrel, down 26 cents, in electronic trading on the New York Mercantile Exchange at 12:51 p.m. Singapore time. Yesterday, the contract rose $2.55 to settle at $78.90, the biggest gain since Sept. 30. Futures are up 76 percent this year.
The Standard & Poor’s 500 Index gained 1.5 percent to 1,109.3 yesterday in New York and the Dow Jones Industrial Average added 1.3 percent. Both reached the highest levels since Oct. 2, 2008.
The 21-member Asia-Pacific Economic Cooperation group, which represents 54 percent of the global economy, said in Singapore that it will maintain economic stimulus measures until there is “durable” growth. The statement pushed the dollar lower against the euro. The greenback was at $1.4968 per euro at 1:02 p.m. in Singapore from $1.4970 yesterday.
October retail sales in the U.S. rose 1.4 percent, Commerce Department figures showed yesterday in Washington. Sales were projected to climb 0.9 percent, according to the median estimate of 66 economists in a Bloomberg News survey.
U.S. crude-oil inventories probably rose last week as imports increased, a Bloomberg News survey of analysts showed.
Brent crude oil for January settlement fell as much as 43 cents, or 0.6 percent, to $78.33 a barrel, on the London-based ICE Futures Europe exchange. It was at $78.56 a barrel at 12:48 p.m. Singapore time. The contract climbed $2.45, or 3.2 percent, to end the session at $78.76 a barrel yesterday.
