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Oil trades at $78/barrel

20 November 2009 07:47 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil rose in New York as investors bought commodities as a hedge against inflation on expectations the dollar will weaken as the global economy recovers, Bloomberg reported.
Oil is also poised for a weekly gain as the Organization for Economic Cooperation and Development doubled its growth forecast for the leading developed economies next year and predicted a further acceleration in 2011 as China powers a global recovery. The dollar has lost 6.8 percent against the euro this year.
Crude oil for December delivery rose as much as 53 cents, or 0.7 percent, to $77.99 a barrel in electronic trading on the New York Mercantile Exchange. It was at $77.90 a barrel at 1:42 p.m. Singapore time. Yesterday, the contract fell $2.12, or 2.7 percent, to $77.46, the biggest decline since Nov. 12. Futures are poised to increase 2 percent this week.
The economy of the OECDâ€™s 30 member countries will expand 1.9 percent next year and 2.5 percent in 2011, the Paris-based group said in a report yesterday. Output will contract 3.5 percent this year. The OECD, which advises members on economic policy, forecast 2010 growth of 0.7 percent in June.
Brent crude for January settlement was at $78.07 a barrel, up 43 cents, at 1:30 p.m. Singapore time on the London-based ICE Futures Europe exchange. Prices fell $1.83, or 2.3 percent, to $77.64 a barrel yesterday.