Gold and silver futures also surge; U.S. oil-supply data ahead
By Polya Lesova, MarketWatch
LONDON (MarketWatch) — Oil futures rallied above $82 a barrel Tuesday in electronic trading on Globex, buoyed by growing investor appetite for assets perceived as risky such as stocks and commodities.
Crude oil for November delivery CL1X +3.30% rose $1.98, or 2.4%, to $82.22 a barrel on Globex.
Stock markets in Europe and Asia posted strong gains, and U.S. equity futures pointed to a higher opening for Wall Street, as investors continued to hope that a credible plan to tackle the euro-zone debt crisis will be put together.
Equities are seen as a barometer of economic activity and, by extension, of oil consumption. Stocks and oil futures often trade in tandem.
“The main reasons [for the gains] are a change of sentiment on financial markets, reflected in rising equity markets and a somewhat weaker U.S. dollar,” said strategists at Commerzbank in a note.
“The downside risks for the economy and oil demand have not disappeared overnight, so a renewed price fall cannot be ruled out,” they said.
Crude futures gained 0.5% Monday, breaking a three-day losing streak.
Oil traders are awaiting two reports on U.S. petroleum supplies. The American Petroleum Institute will release its data on Tuesday afternoon, and the U.S. Energy Information Administration will publish its report on Wednesday morning.
Analysts polled by Platts expect crude-oil supplies to remain unchanged for the week ended Sept. 23. They also project a 1.2-million-barrel increase in gasoline stocks and a 1-million-barrel rise in distillates inventories.
Elsewhere in the commodity markets, gold and silver futures surged. Read more about gold and silver.
