BLBG: Crude Futures Advance as Stocks Gain, U.S. Oil Inventories Seen Increasing
Crude oil advanced in New York with U.S. stock-index futures after Alcoa Inc. reported earnings that topped analysts’ estimates.
Oil jumped as much as 2.6 percent as Alcoa, the largest aluminum producer, jumped 4 percent in early trading. European stocks gained for a sixth day, with the Europe Stoxx 600 index rising 1.7 percent. The International Energy Agency forecast that global oil demand will increase at a slower pace next year.
“We’re just tagging along with the equities market after Alcoa turned out better than expected,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The equity rally seems to be giving us some support.”
Crude for August delivery gained $1.77, or 2.4 percent, to $76.72 a barrel at 9:15 a.m. on the New York Mercantile Exchange. Earlier, they touched $76.91 a barrel. Prices have risen 29 percent in the past year.
September contracts on the Standard & Poor’s 500 Index rose 1 percent to 1,086.90 as of 9:02 a.m. in New York.
To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net.
