LONDON (SHARECAST) - Oil prices improved for the first time in seven sessions Wednesday as global demand forecasts were revised up by the US Energy Information Administration.
US light crude for August delivery rose $2.09 to $74.07 a barrel in New York, a gain of almost 3% on the day. It hasn’t been above $74 in a week.
Boffins at the EIA still think global oil demand will increase by 1.5m barrels a day this year and next, but because the forecast for 2009 had been too low the 2010 and 2011 estimates are higher than last month.
Despite the improvement few are predicting much of an advance from here. Many reckon the $73 level is about right.
There were also gains for gold as investors went bargain hunting following the recent slide from June’s record high at $1,258.30.
August gold added $3.80 to $1,198.90 an ounce, but had struggled early on as China said it wouldn’t increase its gold holdings because of limited global bullion supply and price volatility.
Elsewhere, copper was brighter, while silver topped $18 an ounce for the first time in a week.
