Futures Pros – Crude oil futures were up on Tuesday, rising to a fresh 25-month high, as the U.S. dollar weakened, increasing the investment appeal of the commodity. On the New York Mercantile Exchange, light sweet crude futures for delivery in December rose to USD 87.40 a barrel during European morning trade, gaining 0.59%. It earlier rose to USD 87.63 a barrel, its highest price since October 9, 2008. Crude oil prices were boosted as the U.S. dollar weakened against most of its major counterparts. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.21% during European morning trade. Dollar-denominated oil futures contracts tend to fall when the dollar strengthens, as this makes oil more expensive for buyers in other currencies. Meanwhile, the World Bank said in a report that it now expected China’s economy to grow by 10% in 2010, up from a previous estimate of 9.5%. The bank added that it expected China's economy to grow by 8.7% in 2011, as it continues to expand at a "still healthy pace". China is the world’s second-largest oil consumer, with the International Energy Agency forecasting that China will account for approximately 40% of global oil demand growth in 2010-11. Meanwhile, the American Petroleum Institute, an industry group, was to release its weekly crude oil inventories report later in the day. While analysts expected crude oil inventories to rise by 1.4 million barrels, gasoline inventories were expected to fall by 1.0 million barrels in the week ended November 5. Elsewhere, natural gas futures for December delivery jumped 2.17% to trade at a 2-month high of USD 4.186 per million British thermal units during European morning trade.

Source