By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures advanced Friday as calmer heads seemed to be prevailing on Wall Street and in the euro zone and traders cheered positive sentiment data.
Crude for December delivery CL1Z +0.83% advanced 78 cents, or 0.8%, to trade at $98.46 a barrel on the New York Mercantile Exchange.
A gauge of consumer sentiment rose to 64.2 in a preliminary November reading, advancing more than economists had expected and compared to a final October reading of 60.9, according to the report from the University of Michigan and Thomson Reuters. Read about consumer sentiment.
Consumers took heart on higher equity prices and lower unemployment-insurance claims.
Also helping oil and other investments considered riskier, the yield on Italian bonds fell following the Italian Senate’s approval of austerity measures, increasing hope the country would hold in check the debt crisis.
In Greece, prime minister Lucas Papademos was sworn in as head of the country’s unity government.
“Nerves are calmed and nails go unbitten for now in Europe,” said Matt Smith, an analyst with Summit Energy, in a note to clients. “Equities are looking up, the euro is rallying, and crude is slowly chugging higher again.”
U.S. stocks opened sharply higher Friday on the European news. Stocks are seen as a measure of optimism about the recovery and as such as an indication of short-term oil demand.
Also helping oil and other commodities, the dollar index DXY -0.62% , which compares the U.S. unit to a basket of six currencies, was lower Friday. It traded at 77.218 compared to 77.660 on Thursday in late North American trading.
A lower dollar is a positive for commodities because it lowers their price for holders of other currencies.
