BD: Crude Oil Rises to Highest in Four Days as Asian Equities Gain
Crude oil climbed to the highest in four days as increased profit forecasts drove Asian equities higher and investors grew more optimistic that China’s growth will bolster fuel demand.
Oil traded above $79 a barrel in New York after Asian stocks rose for the sixth time in seven days. China’s full-year economic growth may be as much as 9.5 percent compared with 9.1 percent in 2009, State Council researcher Zhang Liqun said yesterday. About 42 percent of the MSCI Asia Pacific Index’s companies that posted profit since July 12 have beaten analyst estimates, data compiled by Bloomberg show.
“The China market should be quite steady,” said Tetsu Emori, a commodity fund manager at Astmax Co. in Tokyo. “Equity markets should be the main driver for the crude oil market.”
Crude for September delivery gained as much as 40 cents, or 0.5 percent, to $79.35 a barrel on the New York Mercantile Exchange, the highest intraday price since July 27. It was at $79.21 at 3:14 p.m. Singapore time. The contract rose 59 cents, or 0.8 percent, to $78.95 on July 30. Futures climbed 4.4 percent in July, the biggest monthly gain since March.
