Oil heads for biggest weekly gain since June
Crude oil is headed for its biggest weekly increase in more than two months after rising almost 5% yesterday as the dollar slumped, prompting investors to buy commodities.And as for commodities in general: Commodities head for biggest weekly jump in 33 years
Oil is poised for its first weekly gain in two weeks and its largest increase since June 6. Energy and metals futures climbed as the US currency fell the most against the euro in more than a month. An August 20 missile-shield agreement between the US and Poland has ''real anti-Russian potential,'' the Foreign Ministry said in Russia, the second-biggest oil producer.
''Gains were pretty broad based across the commodity space,'' said Gerard Burg, an energy and minerals economist with National Australia Bank. ''The US dollar fell which magnified the upward trend. It's a big move but we've seen this level of volatility and it's once again a symptom of how tight the market remains at this time.''
Crude oil for October delivery was at $US121.43 a barrel, down 25 cents, in afternoon trading on the New York Mercantile Exchange. Yesterday, the contract surged $US5.62, or 4.9%, to settle at $US121.18 a barrel, the biggest increase since June 6. Futures are down 18% from a record $US147.27 reached on July 11. Prices are up 75% from a year ago.
Commodities headed for their biggest weekly gain in 33 years as oil traded near a three-week high and a weakening US dollar revived demand for raw materials as alternative assets.
The Reuters/Jefferies CRB Index of 19 commodities soared 3.7% to 405.92 in New York yesterday. A settlement at that level today would mark a 6.2% gain for the week, the most since July 1975.