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Oil price moves up by 3.1%

30 October 2009 08:39 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil is poised for its biggest monthly gain in five months after a report yesterday showed the U.S. economy grew in the third quarter, ending a year-long contraction and spurring optimism fuel demand will increase.
Oil rose 3.1 percent yesterday, the most in two weeks, after the Commerce Department said the worldâ€™s largest energy- consuming country expanded at a 3.5 percent annual pace between July to September. Gross domestic product was forecast to grow 3.2 percent, according to a Bloomberg News survey.
Crude oil for December delivery traded at $79.93 a barrel, up 6 cents in electronic trading on the New York Mercantile Exchange at 2:29 p.m. Singapore time. Yesterday, the contract rose $2.41 to $79.87 a barrel. Futures, up 79 percent so far this year, are set to gain 13 percent in October, the biggest monthly rise since a 30 percent rally in May.
The dollar fell toward its fourth monthly drop against the euro. It traded at $1.4852 at 2:08 p.m. in Tokyo, from $1.4822 yesterday in New York. A declining U.S. currency spurs demand for commodities, including gold, as an alternative investment.
Crude oil may fall next week on speculation the dollar will rebound against the euro and equities may pull back, according to a Bloomberg News survey.
Fifteen of 34 analysts and traders, or 44 percent, said futures will drop through Nov. 6. Ten respondents, or 29 percent, predicted the market will rise and nine forecast prices will be little changed. Last week, 50 percent of survey respondents said oil would fall.
Brent crude for December settlement traded at $77.95 a barrel on the London-based ICE Futures Europe exchange, slipping 9 cents at 2:29 p.m. in Singapore. Yesterday, the contract settled at $78.04 a barrel, up $2.18, or 2.9 percent, the most since Oct. 21.