BLBG: Oil Rises for a Fifth Day on Speculation Recession Is Ending
By Alexander Kwiatkowski and Grant Smith
July 21 (Bloomberg) -- Crude oil increased for a fifth day as U.S. stock futures rose on signs that the recession is ending in the world’s biggest fuel consumer.
Oil rose, tracking stock futures, after Caterpillar Inc.’s second-quarter profit exceeded analysts’ estimates, spurring speculation that the economic slump is ending. More than 79 percent of S&P 500 companies have beaten earnings projections for the second quarter. U.S. crude oil stockpiles probably declined last week, according to a Bloomberg survey of analysts.
“Oil is drawing strength from the gains in the equity market, as better numbers from Caterpillar stoke hopes for the broader economy,” said Robert Montefusco, a broker at Sucden Financial in London.
Crude oil for August delivery climbed as much as $1.16, or 1.8 percent, to $65.14 a barrel on the New York Mercantile Exchange. It traded at $64.94 at 1:50 p.m. London time.
The August contract expires today. The more-active September contract rose as much as 68 cents, or 1 percent, to $65.97 a barrel.
S&P 500 futures expiring in September added 0.4 percent to 952.40 at 1:21 p.m. in New York. Dow Jones Industrial Average futures advanced 0.5 percent to 8,847. Caterpillar’s profit excluding some costs was 72 cents a share, surpassing the 22- cent average estimate of 20 analysts surveyed by Bloomberg. Coca-Cola Co., DuPont Co. and Merck & Co. also topped forecasts.
Brent crude for September settlement rose 1.1 percent to $67.15 a barrel on London’s ICE Futures Europe Exchange at 1:23 p.m. local time.
To contact the reporter on this story: To contact the reporter on this story: Alexander Kwiatkowski in London at akwiatkowsk2@bloomberg.netGrant Smith in London at gsmith52@bloomberg.net
