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Oil prices increase on recovery hopes

08 September 2009 07:39 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. Crude oil rose for a second straight day as a weaker dollar encouraged buying of commodities and stronger equity markets signaled optimism that the economic recovery is proceeding, Bloomberg reported.

Oil rose, tracking stock markets in Europe and Asia, as the Group of 20 nations agreed on steps to shore up the global financial system. The U.S. currency weakened against the euro for a second day. All 26 analysts surveyed by Bloomberg News predicted OPEC will maintain its daily production target at 24.845 million barrels at a Sept. 9 meeting in Vienna.
Crude oil for October delivery rose as much as 89 cents, or 1.3 percent, to $68.91 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $68.29 at 11:48 a.m. in New York. It earlier fell as much as 48 cents, or 0.7 percent, to $67.54.
MSCI World Index advanced 1.1 percent to 1075.41 at 11:32 a.m. in New York. The dollar weakened to $1.4338 against the euro from $1.4297 on Sept. 4. A weaker dollar encourages investors to buy oil as a hedge against inflation.
Finance ministers and central bankers from the Group of 20 nations left weekend talks in London after pledging to shore up the international financial system with tighter regulation.
Brent crude oil for October settlement rose as much as 1.8 percent to $68.05 on the London-based ICE Futures Europe exchange. The contract traded at $66.92 a barrel at 11:48 a.m. New York time. Brent last week dropped 8.2 percent in the biggest weekly decline this year.