Oil hits $72 a barrel

Oil hits $72 a barrel
# 11 September 2009 08:20 (UTC +04:00)
Baku– APA-Economics. Crude oil is poised for its first weekly gain in three as the dollar fell to near a nine-month low and investors expected Chinese stimulus measures to boost demand for commodities in the second-biggest energy consumer, Bloomberg reported.
Oil is close to $72 a barrel after the dollar traded near its lowest level since Dec. 18 against the euro on speculation reports today will show China’s factory output gained and exports dropped at a slower pace, reducing demand for the U.S. currency as a refuge. China’s Premier Wen Jiabao signaled he will maintain unprecedented government spending to drive an economic recovery.
Crude oil for October delivery was at $71.96 a barrel, up 2 cents, on the New York Mercantile Exchange at 9:40 a.m. Singapore time. Prices have gained 5.8 percent this week and climbed 61 percent this year.

Brent crude oil for October settlement climbed 19 cents to $70.05 a barrel on the London-based ICE Futures Europe exchange at 9:40 a.m. Singapore time. Yesterday, it increased 3 cents to close at $69.86 a barrel.

Oil rose yesterday after the International Energy Agency increased its 2010 estimate for global demand for a second consecutive month. World oil demand is likely to average 85.7 million barrels a day next year, according to a monthly report from the Paris-based agency yesterday. That’s 450,000 barrels a day more than estimated in August.

The dollar traded at $1.4578 per euro at 9:10 a.m. in Tokyo from $1.4582 yesterday in New York, when it dropped to $1.4613. The euro has gained 4.3 percent against the dollar so far this year.
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