LONDON (SHARECAST) - Crude oil futures climbed 2.4% on Monday, despite the stronger dollar and ongoing concern about sovereign debt in Europe.
Crude for January delivery settled up $1.97 at $85.73 a barrel on the New York Mercantile Exchange a two week high.
Demand for oil was triggered early on by optimism over Europe’s rescue package for Ireland and gains remained intact despite concern that other nations such as Portugal may need a financial bail-out.
Meanwhile US stocks staged a late comeback on Monday after the National Retail Federation said that sales on “Black Friday” – the day after the Thanksgiving Day holiday, were comfortably ahead of last year, an encouraging indication that US retail spending is on the right track.
Otherwise contagion worries bumped up gold prices on Monday as investors took a shine to its safe haven qualities.
Gold for February delivery advanced $3.20 to settle at $1,367.50 an ounce on the Comex division of the New York Mercantile Exchange.
While gold is off its all time high of over $1,400, prices are still very high and are expected to remain so amid persistent jitters about European sovereign debt, in particular the underlying financial health of Spain and Portugal.
