Bourse

Bourse

Oil price start to increase

31 July 2009 08:32 (UTC +04:00)

Baku- APA-Economics. Crude oil rose for the first day in three as better-than-expected corporate earnings restored confidence in the prospect of an economic rebound.

Oil gained as stock indexes advanced and European confidence in the financial outlook increased more than analysts expected in July. Yesterday, a U.S. government report showed that oil inventories unexpectedly gained 5.15 million barrels to 347.8 million in the week to July 24. The dollar fell against the euro, spurring demand for commodities as an inflation hedge.
Crude oil for September delivery rose as much as $1.09, or 1.7 percent, to $64.44 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded for $64.05 at 12:48 p.m. London time.
Yesterday, futures dropped $3.88, or 5.8 percent, to $63.35, the biggest one-day decline since April and the lowest close since July 16. Oil has risen 42 percent this year.
The Dollar Index, which the ICE uses to track the U.S. currency against counterparts including the yen, pound and Swedish krona, fell 0.4 percent to 79.286 as of 12:36 p.m. in London.
Brent crude oil for September settlement on Londonâ€™s ICE Futures Europe exchange rose $1.20 cents, or 1.8 percent, to $67.73 a barrel at 12:49 p.m. in London. Yesterday, the contract dropped $3.35, or 4.8 percent, to $66.53.