BLBG: Crude Oil Rises as Equities Gain, U.S. Retail Sales Increase
By Margot Habiby
April 14 (Bloomberg) -- Crude oil advanced, snapping the longest decline since January, as global equities strengthened and sales at U.S. retailers climbed more than forecast in March.
Oil rose more than 1.2 percent as the Standard & Poor’s 500 Index climbed to the highest level since September 2008 on greater-than-estimated profits by Intel Corp. and JPMorgan Chase & Co. U.S. purchases gained 1.6 percent last month, the most in four months, the Commerce Department said in Washington.
The equity markets and earnings reports are “barometers of economic activity and economic recovery,” said John Kilduff, a partner at Round Earth Capital, a New York-based hedge fund that focuses on food and energy commodities. “As they go, so goes energy demand.”
Crude oil for May delivery rose 69 cents, or 0.8 percent, to $84.74 a barrel at 9:16 a.m. on the New York Mercantile Exchange, ending a five-day rally. Oil has gained 72 percent in the past year.
S&P 500 futures expiring in June rose 0.4 percent, and the Stoxx Europe 600 Index gained 0.6 percent on the earnings, which bolstered confidence that a six-week equities rally was justified.
A U.S. government report today is expected to show crude inventories grew for an 11th week, the longest stretch of increases in five years. OPEC cut estimates of demand for its own crude in 2010 as production outside the group accelerated.
--With assistance from Grant Smith in London and Timothy R. Homan in Washington. Editors: Joe Link, Charlotte Porter
