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Oil prices climb slightly

25 September 2009 09:17 (UTC +04:00)

Bakuâ€“ APA-Economics. Oil rose in New York as investors bought contracts after they deemed yesterdayâ€™s decline, the biggest in two months, as excessive.
Crude oil, which fell 4.5 percent yesterday, is poised for its biggest weekly drop since July as an Energy Department report showed increases in U.S. fuel stockpiles, boosting speculation of a supply glut.
Crude oil for November delivery rose as much as 81 cents, or 1.2 percent, to $66.70 a barrel on the New York Mercantile Exchange, and traded at $66.58 at 1:21 p.m. in Singapore. Yesterdayâ€™s drop was the biggest since July 29.
Futures are down 7.6 percent this week, headed for the biggest decline since July 10. Prices have climbed 49 percent this year.
The dollar is set to snap a two-week decline against the euro. A stronger dollar reduces the attractiveness of commodities as a hedge against inflation. The dollar was trading at $1.4683 per euro as of 2:28 p.m. in Tokyo from $1.4666 yesterday in New York and from $1.4712 a week earlier.
Brent crude for November settlement climbed as much as 83 cents, or 1.3 percent, to $65.65 a barrel on the London-based ICE Futures Europe exchange, and was at $65.51 at 1:30 p.m. Singapore time. Yesterday, the contract dropped $3.17, or 4.7 percent, to $64.82.
The premium between later-dated New York oil futures and near-month contracts has narrowed, causing traders to remove crude from storage.
Crude for later delivery that is worth more than prompt supplies is a situation known as contango. The price difference between the first-month New York oil future and the second-month future narrowed to 50 cents a barrel today from $1.41 on Aug. 19. That reduces the incentive to hold oil in storage.