BLBG: Crude Climbs as Stocks Gain on Takeovers, Better-Than-Predicted Earnings
Crude oil climbed for the first time in four days as U.S. and European equities rallied on better- than-forecast earnings and takeover offers.
Oil rose as much as 2.2 percent after Halliburton Co. reported profit that beat estimates. Nokia Siemens Networks said it will pay $1.2 billion for wireless network assets from Motorola Inc., while buyout firm Onex Corp. and the Canada Pension Plan Investment Board are considering a 2.9 billion- pound ($4.4 billion) bid for Tomkins Plc.
“The main focus is the stock market,” said Phil Flynn, vice president of research at PFGBest in Chicago. “Prices wouldn’t be here if stocks weren’t moving higher, because supplies are plentiful and demand is weak. Hopes for an economic rebound and demand recovery support the market.”
Crude oil for August delivery rose $1.52, or 2 percent, to $77.53 a barrel at 9:39 a.m. on the New York Mercantile Exchange. The August contract expires tomorrow. More-active September futures increased $1.55, or 2 percent, to $77.93 a barrel.
“This will probably be a rather boring expiration,” said Addison Armstrong, director of market research at Tradition Energy, a Stamford, Connecticut-based procurement adviser. “Gasoline demand is pretty weak, so refiners won’t need to rush out and get crude.”
The Standard & Poor’s 500 Index gained 0.4 percent to 1,069.32 at 9:43 p.m. The Dow Jones Industrial Average increased 0.5 percent to 10,144.22.
Brent crude oil for September settlement climbed $1.59, or 2.1 percent, to $76.96 a barrel on the London-based ICE Futures Europe exchange.
To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net
