BLBG:Crude Advances for Second Day as Equities Gain, Euro Recovers
Oil rose for a second day in New York as equities advanced before presidential elections in the U.S., the world’s largest consumer of crude.
West Texas Intermediate crude advanced as much as 0.7 percent after trading 0.3 percent lower. The euro erased losses against the dollar, making dollar-denominated assets such as commodities more attractive to investors. Brent may gain in the next three months as stimulus measures by governments in the U.S., Europe and China boost global demand, Bank of America Corp. said yesterday.
“Movements in the dollar typically support crude,” said Andrey Kryuchenkov, a London-based analyst at VTB Capital who correctly predicted last month that Brent would slide. “Traders are obviously eyeing the presidential elections, and demand concerns are going to haunt crude prices for the time being.”
WTI for December delivery climbed as much as 62 cents to $86.27 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $86.06 at 10:41 a.m. London time. The contract traded at $84.34 yesterday, the lowest intraday level since July 12. Prices have dropped 13 percent this year.
Brent for December settlement was 47 cents higher at $108.20 a barrel on the ICE Futures Europe exchange. The European benchmark crude was at a premium of $22.12 to New York- traded WTI.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net
