Crude oil climbed to a two-week high Tuesday, while other US commodities fluctuate as efforts to curb inflation may be less severe than expected in China.
National Retail Federation said that US consumers spent more over the Thanksgiving this weekend than last year, they said that it can be a sign that confidence in the economy is gaining. Almost 212 million shoppers went to stores and online bazaars over the holiday weekend in the US, contributing an average spending of $365.34.
Based on the report, an average US shopper increased purchases by 6.4 percent from the 2009 period. Oil climbed $85 a barrel amid speculation that colder-than-normal weather may increase demand for heating fuel in the eastern US and Europe. Michael Lynch, the president of Strategic Energy & Economic Research, said that cold weather is more feasible earlier in the season than later.
Oil futures for January settlement rose 2.4 percent or $1.97 to close at $85.73 a barrel on the New York Mercantile Exchange, which is considered the highest future delivery contract since November 11. The price gained 13 percent in the past year. Natural gas for January delivery fell 18.9 cents to $4.21 per million British thermal units. Heating oil for December delivery rose 4.19 cents to $2.3581 a gallon, while gasoline for December settlement up 7.43 cents to $2.2846 a gallon.
In other markets, cotton recovered from the biggest weekly drop in 21 months. Cotton for March settlement climbed by the exchange maximum of 3.6 percent or four cents to $1.1576 a pound on ICE Futures US in New York. Previously, the price plunged 9.2 percent, the most since February 2009.
Meanwhile, hogs futures fell in two weeks on signs of slackening demand for US pork and increasing supplies of animals available for slaughter. Hog futures for February delivery dropped 1.2 percent or 0.925 cent to 76.225 cents a pound at 1:04 p.m. on the Chicago Mercantile Exchange, the biggest decline for the most active contract since November 16. The price has increased 16 percent this year.
