CM: Oil Rises as Analysts Eye $100 a Barrel in 2011; Gold Gains as Dollar Slips
Oil is on the rise in early morning trade as the Federal Reserve announced measures to bolster the ailing economy which in turn is expected to increase energy demand. Investment banks including JP Morgan Chase and Bank of America Merrill Lynch now project crude to rise as high as $100 a barrel by next year on increased demand.
Gold is up too as the Fed will pump an additional $600 billion into financial markets by shoring up government bonds, which in turn weakened the dollar.
At 0750 ET, Brent crude is up 1.2% at $87.42 a barrel, while light sweet crude is up 1.3% at $85.77 a barrel, and natural gas is up 0.5% at $3.86 a million British thermal units.
Gold is up 1.9% at $1,362.40 an ounce, while silver is surging 3.7% at $25.34 an ounce, and copper is up 2.1% at $3.86 a pound.
China Petroleum & Chemical Corp ( SNP ) will bolster daily oil processing to record levels in November to avert diesel shortage in the country, with processing rising 10% on year to 583,000 tons a day.
TransGlobe Energy Corp (TGL) reported returning to the black in the third quarter, and its earnings met analysts' expectations.
Hornbeck Offshore Services ( HOS ) reported third quarter results that exceeded expectations on the back of higher revenue from its upstream segment. The company also lifted its full-year outlook.
In the mining sector, Gold Fields Ltd ( GFI ) reported first quarter production of gold rising to its highest level in over two years. Output reached 908,000 ounces, up from 898,000 ounces a year ago.
