ND: OIL FUTURES: Crude Gains as Equities Rise, Dollar Falls
--U.S. crude futures boosted by weak dollar, rising stock market
--Nymex oil recently up 1% to $88.29/bbl
--Equities post early gains, with focus on retail sector
By Jerry A. DiColo
NEW YORK--U.S. crude futures moved higher Friday in light trading, helped by rising stock markes and a falling U.S. dollar.
Light, sweet crude for January delivery recently traded 91 cents, or 1%, higher at $88.29 a barrel on the New York Mercantile Exchange.
Nymex energy markets will settle one hour early Friday, at 1:30 p.m. EST, and light trading volume is expected following the Thanksgiving holiday.
Brent crude on the ICE futures exchange for January delivery traded 67 cents higher at $111.20 a barrel.
Oil prices received a boost from a rise in equities. The Dow Jones Industrial Average was recently up 112 points, or 0.9%, to 12,949, helped by improving data on Chinese manufacturing. Retail stocks posted some gains as shoppers headed out for Black Friday sales.
Additionally, the dollar fell against a basket of other currencies. A weaker dollar is typically bullish for dollar- denominated oil futures, as crude is cheaper for buyers using other currencies.
"The path of least resistance is higher," said Andy Lebow, a broker and oil trader at Jefferies Bache, adding that trading was very light. "It's extroardinarily quiet...people are probably watching the clock closer than the market."
Over the past two weeks, oil markets have wavered between gains and losses as traders weighed the latest Middle East conflict against slumping global economic growth and rising oil inventories.
The conflict between Israel and Hamas in Gaza has paused amid a negotiated ceasefire, calming fears that rocket attacks could lead to a regional war with other nations, such as Egypt, that could impact energy-supply routes.
Meanwhile, European Union leaders entered the second day of budget talks Friday with little sign that a deal was emerging.
The 27-nation bloc remains deeply divided on spending and other issues, and oil markets are concerned that discord could further crimp the EU's economic outlook.
U.S. crude-oil futures are down from recent highs of $99 a barrel in mid-September.
Front-month December reformulated gasoline blendstock, or RBOB, recently traded 0.1% higher at $2.7529 a gallon. December heating oil recently traded 0.4% higher at $3.0836 a gallon.
Write to Jerry A. DiColo at jerry.dicolo@dowjones.com.
