Oil rose from a two-month low in New York as the euro strengthened against the dollar before a meeting of the European Central Bank, bolstering the appeal of commodities to investors.
West Texas Intermediate crude futures advanced as much as 0.7 percent as the single European currency gained 0.4 percent to $1.2941 versus the dollar. A weaker dollar makes commodities more attractive for protecting against inflation. Oil plunged 4.1 percent yesterday, the most since June, after the Energy Department reported that U.S. crude production climbed to the highest level in more than 15 years while fuel consumption decreased.
Crude for November delivery gained as much as 62 cents to $88.76 a barrel on the New York Mercantile Exchange and was at $88.60 at 8:46 a.m. London time. Futures dropped to $88.14 yesterday, the lowest settlement since Aug. 2. Prices are down 10 percent this year.
Brent oil for November settlement was up 83 cents at $109 a barrel on the London-based ICE Futures Europe exchange, after also plunging yesterday to the lowest close since Aug. 2. The European benchmark crude was at a premium of $20.36 to WTI, up from $20.03 yesterday.
Turkey fired into Syrian territory for a second day and called on the United Nations Security Council to take “necessary action” after a Syrian mortar bomb landed in a Turkish town and killed five people.
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 on sev@bloomberg.net
