MW:Oil reclaims $90 level, set for 7th day of gains
By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) — Crude-oil futures rose past the $90-a-barrel level Thursday, well on the way to clinch a seventh day of gains, as upbeat equity markets and a weakened dollar combined with data showing dropping inventories to spur demand.
August futures for the light, sweet grade of crude oil CLQ2 +0.85% traded on the New York Mercantile Exchange climbed 78 cents, or 0.9%, to $90.65 in electronic trading, building on top of the 65-cent advance in a regular session Wednesday.
The advance marks the first time the commodity has traded above the psychologically-important $90 level since May 29. The last time front-month crude futures rose for seven straight trading days was in February this year, when it spiked from $100.74 to $109.77, according to Factset data.
The advance continued as most Asian stock markets ended with solid gains and U.S. equity futures pointed to a likely higher opening on Wall Street Thursday after a technology-sector led rally overnight. Asia Markets
Dow Jones Industrial Average DJIA +0.81% futures rose 34 points, or 0.3%, to 12,894 and Standard & Poor’s 500 Index SPX +0.67% futures advanced 2.80 points, or 0.2%, to 1,370.10. Nasdaq-100 futures climbed 11.25 points, or 0.4%, to 2,631.25.
Data released by the Energy Information Administration Wednesday showed U.S. crude-oil inventories fell 800,000 barrels in the week ended June 13. Although the decline was less than expected, it represented a third straight fall in weekly supplies.
The U.S. dollar also continued to weaken in Asia Thursday, supporting prices of commodities such as crude, which are benchmarked in the currency. Currencies report
Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.
