BLBG: Crude Oil Pares Losses to Trade Near an Eight-Week High as Dollar Weakens
Oil traded near an eight-week high, paring earlier losses, as the dollar dropped against the euro, prompting investors to seek better returns by purchasing crude contracts.
Crude reversed earlier losses after the dollar slumped against the euro following the Reserve Bank of Australia’s unexpected decision to keep interest rates unchanged and the Bank of Japan decide to lower levels to between 0.0 percent and 0.1 percent. U.S. gasoline and distillate fuel stockpiles probably declined last week amid a drop in refinery runs, according to a Bloomberg News survey of analysts.
“Most people are paying more attention to the financial side rather than the fundamentals,” said Tetsu Emori, a commodity fund manager with Astmax Ltd. in Tokyo. “Low rates mean that more people will be looking to invest in risky assets and commodities and crude oil will be good candidates.”
The November contract was at $81.57 a barrel, up 10 cents, in electronic trading on the New York Mercantile Exchange at 1:55 p.m. Singapore time. The contract earlier fell as much as 32 cents, or 0.4 percent, to $81.15. Yesterday it lost 11 cents to $81.47. Oil closed at $81.58 on Oct. 1, the highest level since Aug. 5. Prices are up 2.4 percent this year.
Brent crude for November settlement fell as much as 35 cents, or 0.4 percent, to $82.93 a barrel on the London-based ICE Futures Europe exchange. Yesterday it slipped 47 cents, or 0.6 percent, to end the session at $83.28.
To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net
To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net
